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The
Organization of the Petroleum Exporting Countries and allies,
known as OPEC+, meet on Monday. Four OPEC+ sources said on
Thursday the group was looking at going beyond an existing deal
to add 400,000 barrels per day to supply each month.
Beyond October, "a faster ramp-up in OPEC+ production cannot be
excluded," said Stephen Brennock of oil broker PVM. "The
prospect of $80 oil does not sit well with the producer group."
Brent crude fell 47 cents, or 0.5%, to $77.84 at 1015 GMT,
heading for a weekly decline after three weeks of gains. U.S.
West Texas Intermediate (WTI) slipped 53 cents to $74.50, set
for a sixth consecutive week of rises.
Crude also came under pressure on Friday from a strong U.S.
dollar and rise in U.S. crude inventories reported this week. [EIA/S]
[USD/]
A strong dollar makes oil more expensive for holders of other
currencies and tends to reflect lower investor risk appetite.
Even so, Brent has risen 50% this year and reached a three-year
high of $80.75 on Tuesday. OPEC+ is facing pressure from
consumers such as the United States and India to produce more to
help reduce prices.
Jeffrey Halley, analyst at brokerage OANDA, said there was
potential for Monday's OPEC+ meeting to disappoint in terms of
adding more supply, citing the inability of some members to
raise output and the appeal of high prices to boost revenues.
"Whichever way you cut it; shorting oil is only for the brave
with very deep pockets," he said.
Oil is also finding support as a surge in natural gas prices
globally prompts power producers to move away from gas.
Generators in Pakistan, Bangladesh and the Middle East have
started switching fuels.
(Additional reporting by Sonali Paul and Florence Tan; Editing
by Jason Neely and Edmund Blair)
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