Global oil prices settled higher Friday as prices bounced around ahead of a meeting of major oil producers in Algiers over the weekend.
A weekend report suggested that the meeting may increase production more in order to cover an expected shortfall in output from Iran – if that happens then prices will come under pressure.
In New York November West Texas crude futures rose 46 cents, or 0.7%, to end at $US70.78 a barrel to be up 2.6% for the week.
In Europe, November Brent futures added 10 cents, or 0.1%, to settle at $US78.80. The contract was up just on 15 for the week.
Both Brent and WTI posted back-to-back weekly gains.
A committee made up of representatives of the Organisation of the Petroleum Exporting Countries and some of its outside allies met Sunday in Algiers.
Producers plus Russia had agreed in June to lift production by around a million barrels a day, trimming the long-running production cap to around 800,000 barrels a day
Reuters reported on Friday that OPEC and non-OPEC countries are discussing a possible, additional output increase of 500,000 barrels a day to offset falling supplies from Iran because of Trump’s sanctions.
President Trump has called for OPEC to produce more oil to avoid petrol prices soaring in the run-up next month to the midterm election in early November. US opinion polls suggest rising petrol prices are becoming an issue with Trump supporters.
Iranian exports fell by around 500,000 barrels a day between April and August, according to the International Energy Agency.
Meanwhile, Baker Hughes on Friday reported that the number of active U.S. rigs drilling for oil eased by 1 to 866, for the week. Last week, the report showed a gain of 7. The total active US rig count, which includes oil and natural-gas rigs, fell by 2 to 1,053, according to Baker Hughes.
U.S. crude supplies, meanwhile, have fallen for five weeks in a row, according to data from the Energy Information Administration. US natural gas stocks are low with the start of Winter only a month away.
