UPDATE 9-Oil dips 1.5% ahead of OPEC+ meeting, EU Russian oil ban


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      Crude futures rise this week after three weeks of losses

      OPEC+ seen heading for oil policy rollover, cut not ruled

      Oil prices could fall without further OPEC+ cut, analysts

      Poland agrees to EU's deal for $60 per barrel price cap 

      Russian oil output could fall by 500,000-1 mln bpd

 (Adds CFTC data)
    By Arathy Somasekhar
       HOUSTON, Dec 2 (Reuters) - Oil futures slipped 1.5% in
choppy trading on Friday ahead of a meeting of the Organization
of the Petroleum Exporting Countries and its allies (OPEC+) on
Sunday and an EU ban on Russian crude on Monday.
    Brent crude futures  LCOc1  settled down $1.31, a 1.5% drop,
at $85.57 per barrel. U.S. West Texas Intermediate (WTI) crude
 CLc1  futures fell $1.24, or 1.5%, to $79.98 per barrel.
    Both contracts dipped in and out of negative territory, but
notched their first weekly gains at around 2.5% and 5%, 
respectively, after three consecutive weeks of drops.
    "Traders will be hesitant to be short over the weekend if
there are growing rumblings that OPEC might try to shock and awe
the market at their weekend meeting," said Phil Flynn, an
analyst at Price Futures group.
    OPEC+ is widely expected to stick to its latest target of
reducing oil production by 2 million barrels per day (bpd) when
it meets on Sunday, but some analysts believe that crude prices
could fall if the group does not make further cuts.
    "Crude carries significantly more weekend risk and could be
extremely volatile on the open next week," said Oanda analyst
Craig Erlam, a view echoed by other analysts.
    Russian oil output could fall by 500,000 to 1 million bpd
early in 2023 due to the European Union ban on seaborne imports
from Monday, two sources at major Russian producers said.
    Poland agreed to the EU's deal for a $60 per barrel price
cap on Russian seaborne oil, allowing the bloc to move forward
with formally approving the deal over the weekend, Poland's
Ambassador to the EU, Andrzej Sados, said.
    European Commission President Ursula von der Leyen said the
Russian oil price cap will be adjustable over time so that the
union can react to market developments.
    Russian Urals crude  URL-E  traded at around $70 a barrel on
Thursday afternoon. The cap was designed to limit revenues to
Russia while not resulting in an oil price spike.
    Sending bullish signals, China is set to announce an easing
of its COVID-19 quarantine protocols within days, sources told
Reuters, which would be a major shift in policy in the world's
second-biggest oil consumer, although analysts warn a
significant economic reopening is likely months away.
    The U.S. oil rig count, an indicator of future production, 
remained unchanged this week, according to data from Baker
Hughes. Worries also accelerated that U.S. shale can no longer
boost production at a short notice.  urn:newsml:reuters.com:*:nL1N3162W2 [ RIG/U 
    Government data also showed that U.S. employers added more
jobs than expected in November while average hourly earnings
also increased, potentially giving the Federal Reserve more
incentive to raise interest rates.  urn:newsml:reuters.com:*:nL1N32R2TN
    Money managers cut their net long U.S. crude futures and
options positions in the week to Nov. 29, the U.S. Commodity
Futures Trading Commission (CFTC) said.  urn:newsml:reuters.com:*:nAQN2748CL
 (Reporting by Arathy Somasekhar in Houston
Additional reporting by Mohi Narayan in New Delhi
Editing by Marguerita Choy and Matthew Lewis)
 ((Shadia.Nasralla@thomsonreuters.com; Reuters Messaging:
Reuters Messaging: shadia.nasralla.reuters.com@reuters.net))

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