This, as much as poor production discipline among OPEC producers, will likely cap oil price increases in 2017.
Macquarie's analysis showed that oilsands producers MEG Energy Corp. and Imperial Oil Ltd. were highly sensitive to swings in the price of oil, and their funds flow per share numbers could benefit most substantially from an OPEC cut.
A delegation from Moscow is scheduled to meet OPEC experts in Vienna on Monday.
Prices slumped after OPEC sources said agreement to a 4pc to 4.5pc output cut by all 14 members aside from Libya and Nigeria would still hinge next week on the backing of Iran and Iraq.
Brent crude futures were trading at $48.42 in early trade, down 58 cents, or 1.2%, from their last close.
Painstaking talks among the Organization of the Petroleum Exporting Countries and the world's other leading oil producers on how to restrict output have dragged on for nearly a year without yielding any firm deal.
"It could be expected that OPEC members may ask non-OPEC countries to cut production volumes for the next six months starting from January 1 2017 ... by 880,000 barrels from the total daily production", Azeri newspaper Respublika quoted the country's Energy Minister, Natig Aliyev, as saying.
That would imply a supply cut of more than 1.2 million barrels per day, according to Reuters calculations.
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In the US, "drilling activity has been rising sharply in recent weeks, which usually translates into higher oil production at some point down the line", said Razaqzada.
Earlier statements from Iraqi ministers said on the contrary that the Organisation of Petroleum Exporting Countries should exempt Iraq from output cuts, as the nation needs its oil income to fight the Islamic State group.
The meeting which was set way back late September this year at the conclusion of the International Energy Forum in Algiers raised market expectation on the much talked about oil output cut outlook.
Igor Sechin, a long-standing Putin ally and head of the country's top oil producer, Rosneft, has long expressed doubt about OPEC's power to regulate markets and been skeptical about the deal.
Reuters commodities analyst Wang Tao said Brent could rise to $49.85 per barrel, a level marked by several technical resistance factors.
US oil futures on Tuesday logged their first decline in three sessions after a report said OPEC will wait until November 30 to debate a proposal to cut member output. He said they estimate that this production surplus will reach a million per day by the end of 2016.
An OPEC source told Reuters that OPEC was yet to make a final proposal to non-OPEC countries on joint production cuts, which will be discussed on November 28 in Vienna.