By Jacob Gronholt-Pedersen
SINGAPORE (Reuters) - Brent crude traded around $82 a barrel on Tuesday, just above a four-year low hit last week, with a firm dollar and robust production from U.S. shale oil fields offsetting a drop in output in Libya.
The price has fallen nearly 30 percent since late June and all eyes are on OPEC for any sign the oil cartel will cut prices at a meeting on Nov. 27.
Brent crude for December delivery was down 30 cents at $82.04 a barrel by 0532 GMT after settling more than $1 lower in the previous session. Earlier it touched $81.87, just above the $81.63 seen last week, the lowest since October 2010.
The December contract expires on Thursday.
Brent fell for the seventh straight week last week, the longest losing streak since late 2002. Prices have slumped in part due to rising production from non-OPEC countries, especially the United States.
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U.S. crude was 38 cents lower at $77.02 per barrel after closing down $1.25.
Lower prices have had little impact on drilling in the United States, with output from the fastest-growing and largest shale fields showing no sign of slowing, the Energy Information Administration said.
"U.S. producers may begin to cut production next year. The market may rebound if we see confirmation of that, but as long as production keeps rising from non-OPEC countries, the market will continue to fall," said Yusuke Seta, a commodity sales manager at Newedge Japan in Tokyo.
LIBYA BACK IN FOCUS
Libya's oil output rose above 900,000 barrels per day in September, well above June lows of 100,000 bpd, but it has fallen back again to around 500,000 bpd at most.
An alternative government in Libya that has seized the capital has taken control of the country's biggest oilfield, El Sharara.
While a strong U.S. dollar continued to weigh on oil, winter demand could relieve an oversupply in physical markets.
"Refinery runs are set to rise sharply into winter on healthy margins, seasonal demand and falling maintenance," analysts at Morgan Stanley said in a note. "With positioning extremely short, any notable positive news or improved risk appetite could support a relief rally."
JPMorgan Chase & Co has slashed its 2015 Brent price forecast by $33 to $82 per barrel, citing supply pressures in the Atlantic Basin and the apparent inability of OPEC member states to work cohesively to restrain production.
(Reporting By Jacob Gronholt-Pedersen; Editing by Alan Raybould)