Oil rose above $78 a barrel on Friday, approaching a 3-year high it reached this week, supported by supply shortages due to tight supply from “OPEC +”, recovery in demand, and the decline of 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%, to $78.72, heading for its 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 Brokerage.
Crude also got support from the fall of the US dollar. The decline of the dollar makes oil less expensive for holders of other currencies, and tends to reflect the increased appetite for risk among investors.