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The price of oil has dropped to $78 as OPEC

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The price of oil has dropped to $78 as OPEC

On Monday, the Organization of the Petroleum Exporting Countries and Allies, or OPEC +, will meet. On Thursday, four OPEC + sources indicated that the group was considering going beyond the current agreement to increase its monthly supply by 400,000 barrels per day.

From October onwards, “a rapid increase in OPEC + output cannot be ruled out,” according to Stephen Brinak of oil broker PVM. “The idea of ​​oil at 80 is unpopular with the production group.”

At 1220 GMT, Brent crude fell $ 0.41, or 0.5 percent, to $ 77.90, putting it on a weekly loss after a three-week gain. US West Texas Intermediate (WTI) oil fell ڈالر 0.69 to 74 74.34, although it is still in its sixth week of gains.

A strong US dollar and an increase in US crude inventories were announced this week on Friday.

Oil is more expensive for foreign exchange holders when the dollar is strong, and this reflects the risk appetite of weak investors.

Despite this, Brent has risen 50 percent this year, reaching a three-year high of 80 80.75 on Tuesday. Consumers such as the United States and India are pushing OPEC + to increase production to reduce prices.

According to Jeffrey Haley, an analyst at brokerage Owanda, the OPEC + meeting on Monday may be disappointing in the addition of additional supplies, with some members reluctant to expand production and note the attractiveness of higher prices to boost revenue.

“Short oil is only for the brave with very deep funds, no matter how you cut it,” he added.

Oil is also gaining traction as power companies around the world move away from natural gas due to rising natural gas prices. Generators in Pakistan, Bangladesh and the Middle East have started converting fuel.

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