LONDON — Oil fell to around $78 a barrel on Friday on the prospect that OPEC+ producers might step up a planned increase in output to ease supply concerns, although crude remained in sight of a three-year high reached this week.
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 percent, 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.
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 percent 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.
By Alex Lawler
Affiliate News Feeds
- Washington Examiner
- The Federalist
- The Epoch Times
- The Guardian
- The Gateway Pundit
As the country inches closer toward Election Day, voters are homing in on specific issues that may decide the fate of Congress and several state governments in November. [...]
As the country inches closer toward Election Day, voters are homing in on issues that may decide the fate of Congress and several state governments in November. [...]
An election integrity group sued the Wisconsin Elections Commission for allowing absentee voters to change votes after submitting ballots. [...]
Morris's elitist mindset doesn't allow her to comprehend how people could possibly see issues differently than she does. [...]
WASHINGTON—The United States on Thursday imposed sanctions on companies it accused of involvement in Iran’s petrochemical and petroleum trade, including five based in China, pressuring Tehran as it seeks to… [...]
Democrat-run, legacy mainstream media outlets are increasingly beholden to younger radical progressives, according to journalist, author, and political commentator Amber Athey. “They thought the woke millennials were on their side… [...]
Chancellor admits his proposals are not ‘universally popular’ but says he ‘had to do something different’The Green party is midway through its annual conference today and co-leader Adrian Ramsay is… [...]
Unions to join forces on Saturday to coincide with start of Conservative party conference in BirminghamThe biggest rail strike in Britain for decades will bring most trains to a halt… [...]
Here we go again. One of the reasons so many places in the United States are having massive crime problems is district attorneys who are far left and were elected… [...]
Pennsylvania Democrat US Senate candidate John Fetterman is totally shot after his massive stroke in May. Fetterman is running against Republican nominee Dr. Mehmet Oz in the 2022 US Senate… [...]