UPDATE 10-Oil falls but notches weekly gain as OPEC+ considers output cut

Reuters

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        * 
      Brent and WTI in line for first weekly gain in five 
    

        * 
      Oil prices set to fall about 23% over the quarter
    

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      OPEC+ considers oil output cut of 0.5-1.0 mln bpd, sources
say
    

  
 (Adds CFTC data)
    By Arathy Somasekhar
       HOUSTON, Sept 30 (Reuters) - Oil prices dipped on Friday
in choppy trading but notched their first weekly gain in five on
Friday, underpinned by the possibility that OPEC+ will agree to
cut crude output when it meets on Oct. 5.
    Brent crude  LCOc1  futures for November, which expire on
Friday, fell 53 cents, or 0.6%, to $87.96 a barrel. The more
active December contract  LCOc2  was down $2.07 at $85.11.
    U.S. West Texas Intermediate (WTI) crude  CLc1  futures fell
$1.74, or 2.1%, to $79.49.
    Both contracts rose by more than $1 during the session but
dropped on news that OPEC's oil output rose in September to its
highest since 2020, surpassing a pledged hike for the month, 
according to a Reuters survey on Friday.  urn:newsml:reuters.com:*:nL8N31139C
    "There is definitely some profit taking from the gains we
saw earlier in the week. $80 is sort of the pivot point these
days," said John Kilduff, partner at Again Capital LLC in New
York.
    "Increased worries about financial stability in the UK ...
are undermining the demand outlook once again," Kilduff added. 
    Brent and WTI gained 2% and 1% on a weekly basis, marking
the first weekly rise since August and following nine-month lows
hit this week. 
    Money managers cut their net long U.S. crude futures and
options positions in the week to September 27, the U.S.
Commodity Futures Trading Commission (CFTC) said.  urn:newsml:reuters.com:*:nAQN1U6FEO
    While the dollar has dropped from 20-year highs earlier in
the week, it gained through the day  =USD . A stronger greenback
makes dollar-denominated oil more expensive for buyers holding
other currencies, reducing demand for the commodity. 
    "Price swings have become the norm as market players juggle
worries over the global economy and the prospect of tightening
oil supplies," said Stephen Brennock of oil broker PVM.
    The market has seen support from the prospect of the
Organization of the Petroleum Exporting Countries (OPEC) and its
allies considering cutting production quotas by between 500,000
and 1 million barrels per day (bpd) at their Oct. 5
meeting. urn:newsml:reuters.com:*:nL9N2U802E
    "A deteriorating crude demand outlook won't allow oil to
rally until energy traders are confident that OPEC+ will slash
output," senior OANDA analyst Edward Moya said.
    Analysts expect a production cut because demand fears linked
to a possible global economic slowdown and rising interest rates
have weighed on crude prices. 
    U.S. energy firms this week added two oil rigs for a third
week in a row, but growth in the third quarter slowed due to
recession fears and nagging supply shortages.
    Top White House officials are also set to meet with oil
executives on Friday to discuss Hurricane Ian and low gasoline
inventories as President Joe Biden warns the industry not to
price-gouge consumers, according to two sources familiar with
the matter.
    Brent and WTI prices finished the third quarter with chunky
23% and 25% declines respectively.
 (Reporting by Rowena Edwards; additional reporting by Sonali
Paul in Melbourne and Emily Chow in Singapore; editing by Jason
Neely, Elaine Hardcastle, Marguerita Choy and David Gregorio)
 ((arathy.s@thomsonreuters.com; +1 832 208 3362; Twitter:
@ArathySom;))

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