Oil rose above $78 a barrel today, close to the three-year high reached this week, supported by the recovery in demand and the decline in the US dollar.
The Organization of the Petroleum Exporting Countries and its allies, within the framework of the OPEC+ group, meet on Monday. The group is working to phase out the unprecedented production cuts they adopted last year, but sources say it is considering doing more.
Brent crude rose 41 cents, or 0.5 percent, to $78.72 by 1403 GMT, heading for the fourth consecutive weekly rise. US West Texas Intermediate crude advanced 24 cents to $75.27, and is heading to record the sixth week of gains.
“The near-term price outlook remains positive … the current price trend is one of recovery,” said Stephen Brennock of BVM Oil Brokers.
Crude also received support from the falling US dollar. The decline in the dollar makes oil less expensive for holders of other currencies, and tends to reflect the increased appetite for risk among investors.