MELBOURNE Reuters -- Oil prices were little changed in early trade but went for their first weekly gain in five weeks, underpinned by a weaker U.S. dollar and the possibility that OPEC may agree to cut crude output when it meets on October 5.
U.S. West Texas Intermediate WTI crude futures for November delivery went up 6 cents to $81.29 a barrel at 0054 GMT after falling 92 cents in the previous session.
The November crude futures, which were due to expire on Friday, went up 2 cents to $88.51 a barrel after losing 83 cents in the previous session. The more active December contract increased 1 cent to $87.19.
After hitting nine month lows earlier in the week, Brent and WTI are on track to rise by 3% for the week, their first weekly rise since August.
Brent is going to drop by 8% for the entire month of September, down for a fourth month. Brent has plunged 23%, its first quarterly loss since the fourth quarter of 2021, during the third quarter.
WTI will fall by 9% in September, its fourth monthly decline, and it dropped by 23% during the quarter, the first quarterly slump since March 2020 when COVID 19 slammed demand.
The market appeared to have found a floor, with supply set to tighten as the European Union bans Russian oil imports from December 5. The key unknown is how much demand will drop as global growth slows in the face of aggressive interest rate hikes.
National Australia Bank commodities analyst Baden Moore believes that prices are likely to move higher from here on tightening Russian sanctions, low global crude inventories and the SPR U.S. Strategic Petroleum Reserve supplies.
He believes that OPEC is well positioned to manage supply to offset risks to demand.
Three sources told Reuters that the leading members of the Organization of the Petroleum Exporting Countries OPEC and allies led by Russia have begun discussing an output cut ahead of their meeting on Wednesday.
Russia could suggest a cut of up to 1 million barrels per day, a source familiar with Russian thinking said earlier this week.
Oil prices were also helped up by a drop in the dollar from 20 year highs earlier in the week. A weaker dollar makes dollar-denominated oil cheaper for buyers holding other currencies, which improves demand for the commodity.