US rate rise could push oil price lower

“It will be tough,” one OPEC source said, referring to the meeting in Vienna on Friday, which is widely expected by OPEC insiders and watchers to stay the course and roll over existing output policies.

Many non-Gulf OPEC delegates have complained the Saudis impose their views on the organisation.

A year ago, Saudi Arabia pushed through an OPEC decision to pump more oil and defend market share against surging rival suppliers. The policy has somewhat reduced the pace of the US shale oil boom and non-OPEC supplies are set to decline next year.

But it won’t be enough to stop the glut from increasing as non-OPEC Russia and OPEC member Iraq have steeply raised supply.

Oil prices have more than halved to $45 per barrel from as much as $115 a barrel some 18 months ago.

A second OPEC source said he expected more downward pressure on oil prices if the United States raised its interest rates in December, helping the dollar to extend gains from its recent peaks.