Oil Prices Rise as Chances of OPEC+ Supply Boost Weaken

Oil prices rose in European trading on Friday as attention turned to next week's OPEC+ meeting and expectations that it will dash US hopes for a supply boost.
Brent crude futures for September settlement, due to expire on Friday, gained $2.30 to trade at $109.44 a barrel by 1200 GMT after touching their highest since July 5. The more active October contract was up $2.24 at $104.07.
US West Texas Intermediate (WTI) crude futures rose $2.20 to $98.62 a barrel, Reuters reported.
"It certainly feels like we are back in tradeoff mode again, where sentiment is shifting between recessionary risks in H2 and a fundamentally undersupplied market," said Stephen Innes, managing partner at SPI Asset Management.
A key driver will be the next meeting of the Organization of Petroleum Exporting Countries and allies led by Russia, together called OPEC+, on Aug. 3.
Producers have now unwound the record 9.7 million barrels per day supply cut they agreed in April 2020, when the Covid-19 pandemic slammed demand.
OPEC+ sources said the group will consider keeping oil output unchanged for September, but two OPEC+ sources also told Reuters a modest increase would be discussed.