Oil prices slid on Friday, even as the U.S. dollar pulled back slightly from a near 13-year high, as traders eyed next week's highly anticipated Organization of Petroleum Exporting Countries meeting.
Benchmark Brent crude was down by 1.5%, trading at around $48.24, while West Texas Intermediate crude fell 1.4% to $47.29 in morning trading on Friday.
OPEC members are scheduled to meet on Nov. 30, when they are expected to finalize an agreement to curb production. The cartel has proposed a production output range of 32.5 million to 33 million barrels per day. The organization is also hoping other oil producers will slow production to help the oil market stabilize and boost prices.
However, OPEC's leading producer, Saudi Arabia, just told the organization that it will not attend scheduled talks in Vienna on Monday with non-OPEC oil producers, according to Reuters. The meeting was planned to discuss how oil producers outside the 14-member cartel, such as Russia, could contribute to the plan to cut production.
Analysts at BMO Capital Markets believe that if no agreement is finalized oil prices will drop to $40 a barrel. However, if the organization cannot only agree on a production cut, but also successfully implement it, the analysts see prices moving toward a $45 to $55 a barrel range in 2017.
While the analysts believe the cartel will be able to get a deal done, the uncertainty surrounding OPEC has made oil prices volatile in recent weeks.
A stronger dollar could also impact demand because it makes dollar-denominated commodities, such as oil, more expensive for foreign traders. The ICE U.S. dollar index (DXY), which measures the dollar against a basket six other currencies, was down 0.3% after reaching its highest level since April 2003 earlier this week.