MELBOURNE, Oct 1 (Businesshala) – Oil prices fell on Friday on the possibility that the OPEC+ supplier alliance could step up a planned increase in output to ease supply concerns, which could push up gas prices for electricity. prompting producers to switch from gas to oil.
US West Texas Intermediate (WTI) crude futures slipped 5 cents to $74.98 a barrel by 0153 GMT, though the contract remained on track to post its sixth consecutive week of gains.
Brent crude futures fell 7 cents, or 0.1%, to $78.24 a barrel, but were still headed for a small increase in the week, marking a fourth straight week of gains.
All eyes are now on a meeting of the Organization of the Petroleum Exporting Countries (OPEC) and Russia-led allies, together known as OPEC+, where producers will discuss whether to increase production to 400,000 barrels per barrel. Whether to go beyond your current deal to extend it to Rs. days in November and December (BPD).
Four OPEC+ sources said adding more oil was being viewed as a scenario, without giving details on volume or dates, against the backdrop of oil hovering near three-year highs and consumer pressure for more supplies. Against.
“The upcoming OPEC+ meeting on Monday will be crucial for the direction of the oil price next week. Production above 400,000 bpd will see some short-term relief,” ANZ Research analysts said in a note.
White House press secretary Jen Psaki said the Biden administration’s concerns about high oil prices in the United States were on the agenda for a meeting between US National Security Adviser Jake Sullivan and Saudi Crown Prince Mohammed bin Salman earlier this week .
With natural gas prices rising globally, power producers are turning to fuel oil or diesel instead of gas, driving oil prices higher. Generators in Pakistan, Bangladesh and the Middle East have already started changing fuel.
“This suggests that we should see strong oil demand in the coming months, which means the oil market is tighter than expected by the end of the year,” ING Commodity analysts said in a note.