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Hong Kong - Oil is set for the first weekly drop since September as an OPEC committee meets in Vienna on Friday to discuss output quotas for members participating in an agreement to cut production.
Futures were little changed in New York and down 2.2% for the week.
Brazil will attend the Organisation of Petroleum Exporting Countries gathering Saturday, joining other producers outside the group, including Russia, as it seeks non-member cooperation on output reduction. Saudi Arabia and its Gulf allies are willing to cut 4% from their peak production, Reuters reported, citing people familiar with the matter.
Oil has fluctuated near $50 a barrel amid uncertainty about whether OPEC can implement the first supply cuts in eight years at its official November meeting.
The OPEC committee will try to resolve differences over how much individual members should produce, with Iraq saying Sunday it should be exempt because of conflict with Islamic militants.
“There are some concerns about the execution of an agreement, but investors don’t want to be caught short if OPEC comes up with something substantial,” said Chris Weston, chief market strategist at IG in Melbourne. “We could see a break of $52 on a deal and then we’re looking for higher levels.”
West Texas Intermediate for December delivery was at $49.71 a barrel on the New York Mercantile Exchange, down 1 cent, at 9:46 a.m. in Hong Kong. The contract gained 54c to $49.72 a barrel on Thursday. Total volume traded was about 80% below the 100-day average. Prices are set for the first weekly drop in six weeks.
Brent for December settlement traded down 1c at $50.46 a barrel on the London-based ICE Futures Europe exchange. Futures rose 1%, to $50.47 a barrel on Thursday. Prices are down 2.5% this week. The global benchmark crude traded at a premium of 75c to WTI.
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