Oil down as dollar rises, OPEC leaves output target unchanged

By Vladimir Soldatkin

LONDON (Reuters) - Oil prices fell on Friday as the dollar rose and after OPEC kept its oil production target unchanged for another six months.

The dollar rose more than 1 percent against a basket of other currencies on Friday following strong-than-expected U.S. employment data showing job growth accelerated sharply in May and wages picked up, signs of momentum in the world's largest economy.

Brent crude oil for July was down 30 cents at $61.73 a barrel by 1315 GMT after earlier rising to a high of $62.83.

U.S. crude futures were down 40 cents at $57.60.

OPEC's decision to keep its existing production target had been widely anticipated.

OPEC has been pumping over 31.2 million bpd in recent weeks, a Reuters survey has shown, with Saudi Arabia's production near record levels. OPEC's output target remains 30 million bpd.

Kash Kamal, senior analyst at brokerage Sucden Financial in London, said investors were reassured that OPEC had not raised its output target to reflect current production.

"Markets are thankful there's no increase in the production quota," Kamal said.

The oil market is heavily oversupplied.

Andy Brogan, Global Oil & Gas Transactions Advisory Services Leader at EY, said:

"If this morning has taught us anything it is that the journey back to a high oil price world will be a long one if it happens at all," he said.

Oil prices tumbled 5 percent in the previous two sessions as investors expected world oversupply to continue.

Lower oil prices have helped support growth in fuel consumption and put a damper on the U.S. shale boom.

(Additional reporting by Henning Gloystein in Singapore; Editing by Christopher Johnson and William Hardy)