Oil eases over demand worries ahead of OPEC+ meeting

Oil eases over demand worries ahead of OPEC+ meeting

MELBOURNE: Oil prices fell about 1% in early trade on Wednesday before paring some losses, ahead of a meeting OPEC+ producers on fears of a slowdown in global growth hitting fuel demand and a firmer dollar.

Brent crude futures were last down 38 cents, or 0.4%, at $100.16 a barrel at 0345 GMT. West Texas Intermediate (WTI) crude futures slid 35 cents, or 0.4%, to $94.07 a barrel.

The Organization of the Petroleum Exporting Countries and allies including Russia, together known as OPEC+, meet on Wednesday. OPEC+ sources told Reuters last week that the group will likely keep output unchanged in September, or raise it slightly.

Analysts are expecting no change due to a weak outlook for demand as recession fears grow, and said top producer Saudi Arabia may be reluctant to beef up output at the expense of OPEC+ partner Russia, hit by sanctions due to the Ukraine conflict.

"This week's main event for oil remains today's OPEC+ decision and that should keep prices somewhat rangebound until OPEC and its partners decide what to do with September's output," Edward Moya, senior market analyst at OANDA, told Reuters.

He added that the organization has a strong case to stand by their standard increase of 400,000