LONDON OP OPEC + Oil prices fell to around 78 78 a barrel on Friday in the hope that producers could increase production as planned to ease supply concerns, although crude reached a three-year high this week.
The Petroleum Exporting Countries and the Allies, known as OPEC +, are meeting on Monday. On Thursday, the group was looking to go beyond an existing agreement to add 400,000 barrels per day for supply, four OPEC sources said.
Outside of October, “a rapid ramp-up in OPEC + production cannot be ruled out,” said Stephen Brank of oil broker PVM. “The prospect of $ 80 oil doesn’t sit well with the producer group.”
Brent crude fell 47 cents, or 0.5 percent, to .8 77.84 at 1015 GMT, heading for a weekly decline after a three-week gain. US West Texas Intermediate (WTI) fell 53 cents to. 74.50, rising for the sixth week in a row.
The strong U.S. dollar reported this week and rising crude in U.S. crude inventories also came under pressure on Friday.
A stronger dollar makes oil more expensive for holders of other currencies and reduces investors ’appetite for risk.
Still, Brent has risen 50 percent this year and reached a three-year high of 80 80.75 on Tuesday. OPEC + is facing pressure from consumers like the US and India to bring down prices.
Broker Onder analyst Jeffrey Haley said Monday’s OPEC + meeting is likely to be frustrating in terms of adding more supplies, citing the inability of some members to increase production and higher price requests to boost revenue.
“No matter how you cut; Shorting oil is a very deep pocket only for the brave, ”he said.
Oil is also finding support as global natural gas prices rise, prompting power producers to move away from gas. Generators in Pakistan, Bangladesh and the Middle East have begun to change energy.
By Alex Lawler
This News Originally From – The Epoch Times