Brent slips below $86

Brent crude futures fell below $86 a barrel as a firmer dollar and a well-supplied oil market combined to put the benchmark on course to end October with its steepest monthly decline since 2012.

Unless OPEC moves to cut oil output at its meeting in November, traders say oil prices, which have dropped by a quarter since June, are likely to extend their rout.

Brent crude for December delivery had slipped 32 cents to $85.92 a barrel early. The oil benchmark has fallen more than 9 percent so far in October, on track for its biggest weekly drop since May 2012.

US crude eased 14 cents to $80.98 per barrel. Having lost 11 percent this month it was also heading for its worst performance since May 2012.

There are no signs that OPEC members will cut oil production to rescue prices when they meet in Vienna on 27 November. OPEC secretary general Abdullah al-Badri added to growing signals that the group would stick to its production target of 30 million barrels per day.

OPEC should cut output by 500,000 bpd to 1 million bpd, according to Hasegawa, citing slow oil demand given weaker economies in China, Japan and Europe. A 1 million bpd cut may be enough to push Brent back to $95, he said.

Among global economies, only the US is on the mend. Data showed the US economy grew 3.5 percent in the third quarter, topping market estimates for a 3 percent rise.

The data underpinned the dollar near four-week highs versus a basket of currencies, making dollar-denominated commodities such as oil more expensive for buyers using other currencies.