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Oil mixed as dollar gains and key OPEC meeting looms

Reuters  |  NEW YORK 

By Ayenat Mersie

NEW YORK (Reuters) - prices were mixed on Thursday, with Brent slipping and U.S. crude gaining, as a stronger dollar weighed and a key supply-setting meeting of the Organization of the Exporting Countries loomed.

lost 80 cents to settle at $75.94 a barrel, while Intermediate crude gained 25 cents to settle at $66.89.

"The independent show of WTI strength is merely a catchup process to the higher priced products and Brent values," Jim Ritterbusch, of said in a note.

Brent and WTI hit 3-1/2-year highs in May but have since drifted lower, indicating investors expect the market to soon become better supplied as U.S. crude production rises and as and its allies look poised to increase output.

The dollar <.DXY> gained against a basket of currencies, approaching the six-month high it hit in late May as the euro fell broadly as the planned to keep interest rates at record lows into the summer of 2019.

"(ECB Mario) Draghi came out a little bit more dovish than people thought he was going to be. And that really caused the euro to take a dip and the (U.S.) dollar to go up, which is putting downward pressure on prices," said Phil Flynn, at in

A stronger dollar makes greenback-denominated commodities, like oil, more expensive for holders of other currencies.

supply concerns have also weighed on the market.

In 2017, began cutting about 1.8 million barrels per day to support the market. But, with Brent prices up by around 180 percent from their 2016 low, global crude inventories falling, Venezuelan production plummeting and imminent sanctions against Iran, the group may soon end their supply cuts.

The alliance meets on June 22-23 in Vienna, where it is expected to come to a decision on output.

"A wait-and-see approach is taking hold across the as market participants buckle down ahead of next week's crunch OPEC/non-meeting," said Stephen Brennock, at brokerage

Russian said members of the OPEC-plus production cut deal can consider returning up to 1.5 million bpd to the market gradually.

Saudi said he expected a reasonable and moderate agreement next week when OPEC and non-OPEC meet.

The two ministers agreed to expand cooperation in oil and gas, Russia's ministry said in a statement after their meeting in

(Additional reporting by and in and Henning Gloystein in Singapore; Editing by and Lisa Shumaker)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, June 15 2018. 01:20 IST