* Low trading volumes ahead of weekend producer meeting
* Top producers to meet Sunday to discuss freezing output
* Analysts expect little impact from meeting
(Updates prices)
By Dmitry Zhdannikov
LONDON, April 15 (Reuters) - Oil prices fell on Friday in
thin trade as analysts said a weekend meeting of major oil
exporters would do little to help clear global oversupply
quickly even though it could provide a floor for the market.
Oil producers led by top exporters Saudi Arabia and Russia
plan to meet in Qatar on Sunday to discuss freezing output
around current levels in an effort to contain a glut that sees
some 1.5 million barrels of crude produced every day in excess
of demand.
Traders said they were reluctant to take on new positions
ahead of the meeting, which takes place outside market hours.
"Momentum is building behind an agreement that likely
excludes Iran (and potentially Libya). While there will likely
be little effect on the physical market an agreement would
represent an important psychological shift in setting oil
prices," investment bank Jefferies said on Friday.
Brent crude futures LCOc1 were at $42.94 a barrel at 1148
GMT, down 90 cents from their previous close after falling by
more than $1. U.S. West Texas Intermediate (WTI) futures CLc1
were also down 85 cents, trading at $40.65.
Yet with discussions among producers focussing on freezing
output levels rather than cutting them, most analysts said they
had little hope for a Doha deal that reduces the global
oversupply.
The glut has pulled down crude prices by as much as 70
percent since mid-2014.
"The Doha meeting does not materially change the oil market
balances," Barclays (LON:BARC) bank said.
Instead of pushing prices up by much, Barclays said an
agreement could prevent prices from otherwise falling further.
"If recent supply-side fundamental support holds and the
market's expectations for a credible statement and commitment
are met, the meeting could help prevent prices from falling back
to the low $30 range."
Energy consultancy Wood Mackenzie said: "Even if an output
freeze is announced, we do not expect a genuine one to occur
during the remainder of 2016."
Instead, Wood Mackenzie said it expected "OPEC output to
rise 0.5 million barrels per day (bpd) year on year in 2016,
with most of that growth coming from Iran and Iraq, both of whom
have indicated plans to grow output in 2016."
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