Oil falls as OPEC nears deal to raise production

Oil prices fell yesterday as crude exporters in OPEC appeared to be nearing a deal to increase production.

Benchmark Brent crude dropped $1.76 a barrel, or 2.3 per cent, to a low of $72.98 before recovering a little to $73.54, down $1.20, by 1215 GMT. U.S. light crude was $1.00 lower at $64.71.

Brent reached a 3-1/2-year high above $80 a barrel last month but has fallen steadily in recent weeks as Saudi Arabia, de facto leader of OPEC, has signalled it intends to raise production to stabilise prices.

The Organization of the Petroleum Exporting Countries holds its biannual meeting in Vienna on Friday and is widely expected to agree to pump more, possibly supported by some other producers outside OPEC, including Russia.