OPEC Might Implement Output Cuts at Upcoming Meeting (OIL) (USO)

United States Oil ETF (NYSE: USO) and iPath S&P GSCI Crude Oil TR ETN (NYSE: OIL) are on watch Tuesday following news that Organization of the Petroleum Exporting Countries (OPEC) might be nearing a compromise which could to a cut in oil supply.

The WSJ, citing a Gulf official with knowledge of the situation, said Saudi Arabia is likely to agree with some member expectations that OPEC more closely adhere to its self-imposed ceiling at Thursday's meeting.

The overall move, then, would be based on OPEC's current output limit versus simple implementation of an output cut.

News comes as crude prices have stabilized around $80 per barrel following a 30 percent drop over the last few months.

Shares of the two oil ETFs are lower Tuesday.

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