Oil settles near 3-year high ahead of OPEC+ meeting
Oil rose above $78 a barrel on Friday, within sight of this week’s three-year high, supported by tight supplies due to OPEC+ supply curbs, recovering demand and a weaker U.S. dollar.
The Organization of the Petroleum Exporting Countries and allies, known as OPEC+, meet on Monday. The group is slowly unwinding record output cuts made last year, although sources say it is considering doing more.
Brent crude rose 1% to trade at $79.13 per barrel, heading for its fourth weekly rise.
U.S. West Texas Intermediate (WTI) advanced .9% to $75.71 per barren and was set for a sixth week of gains.
Crude also gained support from weakness in the U.S. dollar. A weaker dollar makes oil cheaper for holders of other currencies and tends to reflect increased investor risk appetite.
Brent has risen over 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.
Reference: Reuters
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