Brent at highest since July 5 above 110bbl
Equities rise, dollar weakens
OPEC sources say steady production in focus

LONDON, July 29 Reuters Oil prices rose in European trading on Friday as attention turned to next week39;s OPEC meeting and expectations that it will dash U.S. hopes for a supply boost.

Brent crude futures for September settlement, due to expire on Friday, gained 3.06 to trade at 110.20 a barrel by 1325 GMT after touching their highest since July 5. The more active October contract was up 3.44 at 105.27.

U.S. West Texas Intermediate WTI crude futures rose 3.54 to 99.96 a barrel.

Both contracts are set for a second monthly loss, however, down 4.1 and 5.7 respectively.

A weaker dollar and stronger equities also lent support on Friday. A fall in the dollar makes oil cheaper for buyers with other currencies.

Global equities, which often move in tandem with oil prices, were up on the hope that U.S. monetary tightening would not be as hawkish as initially expected after disappointing growth figures.

A Reuters survey forecast Brent and U.S. crude would average 105.75 and 101.28 a barrel respectively this year.

Frontmonth Brent futures are selling at a rising premium to laterloading months in a market structure known as backwardation, indicating tight current supply.

The oil market in Europe is considerably tighter than in the U.S., which is also reflected in the sharply falling Brent forward curve, said Commerzbank analyst Carsten Fritsch.

A key…