TOKYO (Reuters) – Oil fell on Monday ahead of an OPEC+ supply policy meeting https://www.reuters.com/business/energy/opec-meets-output-increase-oil-prices-rally-2021-10-03 that may decide whether a recent rally in prices can be sustained as the world fitfully recovers from the COVID-19 pandemic.

It was $0.3% lower at $79.04/barrel by 0143 GMT. The price of oil rose by 1.5% in the last week. This is its fourth consecutive weekly increase. After rising over the last six weeks, U.S. crude oil fell by 0.4% or 27 Cents to $75.61.

Brent has risen to almost $80 this week as a result of supply disruptions and rising global demand.

ANZ Research noted that investors have been focusing on the upcoming OPEC+ meetings to increase their risk appetite.

OPEC+ (Organization of the Petroleum Exporting Countries) is due to meet late in the afternoon.

Some countries are urging the group to increase production to lower prices, as there has been a rapid recovery in demand for certain products.

OPEC+, which agreed to increase production by 400,000 barrels a day until at least April 2022 and to eliminate 5.8million bpd of cuts in July, also agreed to reduce existing output. Reuters was informed recently by four OPEC+ source that producers are considering expanding beyond the deal.

Any increase in volume would occur as soon as November, since October volumes were decided by OPEC+ at its last meeting.

The oil price rally has also been fuelled by an even bigger increase in gas prices https://www.reuters.com/business/energy/whats-behind-wild-surges-global-lng-prices-risks-ahead-2021-10-01 that have spiked 300% and are trading around $200 per barrel in comparable terms, prompting switching to fuel oil and other crude products for generating electricity and other industrial needs.