Sonali Paul

MELBOURNE, (Reuters) – Oil prices fell on Friday as OPEC+ suppliers hoped to increase production to alleviate supply worries. Rising gas prices have prompted power producers to shift from oil to gas.

U.S. West Texas Intermediate crude futures fell 5 cents at $74.98 per barrel at 0153 GMT. However, the contract is still on track for its sixth consecutive week in gains.

Futures lost 0.1% or 7 cents to $78.24/barrel, although they were heading for an increase on the week. It was also marking a fourth week of gains.

Now all eyes will be on the Organization of the Petroleum Exporting Countries, (OPEC), and Russia’s allies on Monday. Here, producers will debate whether they want to extend their current agreement and increase production by 400,000 barrels a day (bpd).

Four OPEC+ source said that more oil is being considered, but they did not provide details or dates. The scenario was set against a backdrop where oil prices are near a record high of $33 billion and there is increasing demand from the consumers.

For next week’s oil price direction, Monday’s OPEC+ meeting will prove crucial. In a note, ANZ Research analysts stated that if production increases exceed 400,000 bpd they would experience some temporary relief.

The concern of the Biden Administration about rising oil prices in the United States was discussed at a meeting this week between Jake Sullivan, U.S. National Security Advisor and the Saudi Crown Prince Mohammed bin Salman. Jen Psaki, White House Press Secretary said that.

Global oil prices are soaring, so power producers have started using fuel oil and diesel to drive up oil prices. Already, power plants in Bangladesh, Pakistan and the Middle East are switching to fuel oil.

“This suggests that we should see strong oil demand in the coming months, which means a tighter-than-expected oil market through until the end of the year,” ING commodity analysts said in a note.