Oil slips ahead of OPEC+ meet

Oil edged lower on Monday, ahead of an Organization of Petroleum Exporting Countries and allies (OPEC+) meeting that would discuss whether the recent rally in prices amid supply shocks and recovery from the pandemic will be sustained.

Brent crude lost 0.2%, or 14 cents, at $79.14 per barrel by 0505 GMT. The benchmark contract climbed up 1.5% during the previous week, its fourth consecutive gain in a row.

U.S. oil likewise shed 0.2%, or 15 cents, to $75.73 a barrel, after rallying for the past six weeks.

Oil prices have experienced an increase due to disruptions in supply and a rise in global demand.

According to market-leading insights provider, ANZ Research, Risk appetite was “boosted by growing confidence in a strong pick up in global growth”. Investors are now focusing on the OPEC+ meeting due later in the day.

The OPEC+, whose members include Russia, is receiving pressure from some countries to increase output to help lower prices as demand has recovered faster than expected in certain parts of the world.

The oil cartel has agreed in July to increase production by 400,000 barrels per day (bpd) every month until at least April 2022 to phase out 5.8 million bpd of existing cuts.