Oil falls ahead of OPEC+ supply policy meeting | Reuters

Oil falls ahead of OPEC+ supply policy meeting | Reuters

Oil fell on Monday ahead of a meeting by OPEC and its allies which may determine whether a recent rally in prices amid supply shocks and a recovery from the COVID-19 pandemic will be sustained.

Brent crude was down 37 cents or 0.5% at $78.91 per barrel by 0850 GMT. It rose 1.5% last week, its fourth weekly gain in a row. U.S. oil dropped by 39 cents or 0.5% to $75.49, after gaining for the past six weeks.

Oil prices have risen due to the supply disruptions and a rise in global demand, pushing Brent last week above $80 to a near three-year high.

"The speed, with which oil prices have risen this year has slowed considerably but it would be too early or pre-mature to write off further strength. Oil demand is holding up well and supply might have difficulties to catch up," said Tamas Varga, oil analyst at London brokerage PVM Oil Associates.