Peter Nurse   

Investing.com — Oil prices slipped Friday, on course for a negative week as traders bank recent gains in the face of rising U.S. inventories, the prospect of more Iranian exports and ahead of next week’s OPEC+ meeting.

Futures fell 0.6% to $82.31 per barrel at 9:40 ET (1340 GMT) while they dropped 0.4% to $83.31 per barrel at $83.31 per barrel. The multi-year peak of Monday’s contracts was broken, and futures are expected to close the week at 1.7% and 2.5% respectively.

U.S. The price of gasoline RBOB Futures was up 0.3% to $2.3655 per gallon.

Oil prices have surged this year as economies around the globe, in particular the U.S. economy, the world’s biggest consumer, recover from the pandemic. Prices have declined this week, despite the fact that U.S. crude oil stocks increased by more than expected 4.3 million barrels. 

Adding to this week’s woes was Iran stating that talks on reviving its nuclear deal will resume by the end of November. An agreement over the Persian Gulf country’s nuclear ambitions would bring the removal of U.S. sanctions closer, potentially allowing the country, which holds some of the largest oil reserves in the world, to export oil onto the global market once more.

Even if they can reach an agreement, it will be a long process and there is still a tight supply. 

State-owned oil giants are now reducing their prices after two consecutive months of price cuts Saudi Aramco According to a Reuters survey, the SE: may increase the selling price of flagship Arab Light crude oil by between 30 and 90 cents.

Next week, the attention will be on the November meeting of the Organization of the Petroleum Exporting Countries (OPEC+) and its allies. 

The top producers will likely stick with their plans to increase supply by 400,000 barrels each day until April 2022. Algeria has added Thursday to the chorus of concern that the group must remain careful in increasing supply as the world market recovers from last year’s unprecedented output reductions.

It is likely that supply will play catch up with demand for the short term.