Traders await the results of OPEC’s emergency meeting on November 29 in Egypt and the regular meeting December 17 in Algeria.

“So far, it appears that the Saudis would prefer to wait until the December meeting before announcing cuts,” said Robert Johnston, an energy analyst at Eurasia Group. The Saudis, OPEC’s largest producer, have the most clout.

“However, a high level of compliance with the October cuts and the continued price collapse likely increases Saudi willingness to take on further cuts, whether in November or December,” Johnston added.

Analysts at Saxo Bank wrote that, from a technical standpoint, next week will be very important. “We will be watching $56 and more importantly $61 on the January WTI [West Texas Intermediate] crude contract as potential bullish indicators.”

Source: Crude Inches Higher, OPEC Meets in a Week

Phil Flynn, of Alaron Trading, responded to the Chinese news by calling it “a lot of stimulus that the market wasn’t expecting … It’s a two-year project, and it will increase energy demand from China.”

Flynn added that any gains may not be sustainable, though. “China has gone from having to slow their economy to having to boost it,” he said. “The market is still trying to determine the extent of the global economic downturn. In the meantime, we remain in a trading range, trying to break higher into the [$70 a barrel range] or breaking down in the $50s.”

The big factor is OPEC’s “pledge to cut production even deeper if prices are not in the $70-$90 range,” says Kevin Kerr, editor of Global Commodities Alert. “Giving that threat some teeth is the fact that the Saudis seem to be on board with the cuts.”

Kerr added that it’s clear OPEC is “fearful of an Obama presidency and what the longer-term impact to their industry will be,” and said the cartel will likely “vigorously defend the $60 level.” ”

Source:  Crude up slightly -  Drops below $60 but recovers