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Algeria said on Thursday a crude output increase by OPEC and its
allies in December should not exceed 400,000 barrels per day
because of risks. The alliance, which is gradually unwinding
last year's record output cuts, meets on Nov. 4.
"Supply will therefore continue to play catch-up with demand in
the immediate term," said Stephen Brennock of oil broker PVM.
"In short, OPEC+ is intent on continuing to act as a key pillar
of price support."
Brent crude rose 25 cents, or 0.3%, to $84.57 a barrel by 1104
GMT, while U.S. West Texas Intermediate crude added 27 cents, or
0.3%, to $83.08. Both benchmarks touched multi-year highs on
Monday.
Crude has surged in 2021 as economies recover from the pandemic.
Still, prices are on track to fall this week - the first weekly
drop in about two months for Brent.
This week's U.S. inventory figures showed crude stocks rose by a
more-than-expected 4.3 million barrels. [EIA/S]
Iran said talks on reviving its nuclear deal will resume by the
end of November, bringing it a step closer to boosting oil
exports.
"The sharp rise in U.S. crude oil stocks and the expectation of
nuclear talks being resumed with Iran have temporarily eased
concerns about supply to some extent," said Carsten Fritsch of
Commerzbank.
The heat also came out of the rally due to easing concern about
surging natural gas and coal prices that have spurred
fuel-switching in power generation.
British and European gas prices continued to fall on Friday
after Russian President Vladimir Putin said Russia could start
pumping gas into European storage.
(Additional reporting by Roslan Khasawneh in Singapore and
Sonali Paul in Melbourne; editing by Jason Neely)
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