Oil fell below $78 a barrel on Friday on the possibility that OPEC+ producers could extend a planned increase in output to ease supply concerns, though crude rose to a three-year high this week .
The Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, meet on Monday. Four OPEC+ sources said on Thursday that adding more oil than planned is being viewed as a scenario without giving details.
OPEC+ is easing its production restrictions at 400,000 barrels per day.
“Beyond October, a sharp jump in OPEC+ production cannot be ruled out,” said Stephen Brennock of oil broker PVM. “The prospect of $80 oil doesn’t sit well with the producer group.”
Brent crude fell 58 cents, or 0.7%, to $77.73 by 0820 GMT, turning a weekly decline after three weeks of gains. US West Texas Intermediate (WTI) fell 58 cents to $74.45, set for a sixth consecutive week of increase.
Brent price rose 50% this year to hit a three-year high of $80.75 on Tuesday.
Although OPEC+ producers are easing their production restrictions, they are still holding on to millions of barrels of capacity and facing pressure from consumers such as the United States and India to help lower prices.
Oil is gaining support as a jump in natural gas prices globally prompts power producers to move away from gas. Generators have started changing fuel in Pakistan, Bangladesh and the Middle East.
Crude also came under pressure from a stronger US dollar on Friday, and weekly data showed an increase in US crude inventories as production rebounded from recent storms.
A stronger dollar makes oil more expensive for other currency holders and reflects a lower investor risk appetite. The dollar hit a one-year high this week.
This story has been published without modification in text from a wire agency feed. Only the title has been changed.
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