With three weeks to go until the next OPEC meeting, the oil market is abuzz about the level of production that OPEC and its allies are likely to cut. Some delegates have said that talks have started about at least 1 million b/d of production being slashed.

Meanwhile, producers in Oceania and the Middle East will be looking out for the January loading condensate cargoes that are expected to trade this week. Spot differentials for Australian and Qatari ultra-light grades are already facing strong downside pressure from weak naphtha cracks.

Chinese President Xi Jinping will be visiting Manila to meet Philippine President Rodrigo Duterte. The leaders are expected to discuss the possibility of signing a framework for a joint oil and gas exploration in the South China Sea.

Thermal coal buyers are expecting prices to weaken this week amid China's move to restrict coal imports for the rest of the year. Australian and Indonesian thermal coal will have to find alternative markets.

China's port restriction adds to the pressure on Panamax and Supramax freight rates due to lack of demand.

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