Oil price falls 2% as Opec nears deal to raise production
Oil has steadily fallen in recent weeks as Saudi Arabia, de facto leader of Opec, has signalled it intends to raise production to stabilise prices
London — Oil prices fell on Thursday as crude exporters in Opec appeared to be nearing a deal to increase production. Benchmark Brent crude fell $1.76 a barrel, or more than 2%, to a low of $72.98 before recovering slightly to $73.34, down $1.40, by 9.45am GMT. US light crude was $1.00 lower at $64.71. Brent reached a three-and-a-half-year high above $80 a barrel in May but has fallen steadily in recent weeks as Saudi Arabia, de facto leader of oil cartel Opec, has signalled that it intends to raise production to stabilise prices. Opec holds its biannual meeting in Vienna on Friday and is widely expected to agree to pump more, possibly supported by some other producers outside Opec, including Russia. Iran had been expected to oppose any rise in crude output, but it has now signalled that it may support a small increase. "We need to release supply to the market," Saudi Arabian energy minister Khalid al-Falih told reporters in Vienna. Falih said the oil market had now rebalanced and h...
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