Aug 30 (Reuters) - Oil fell on Friday and was on track

for a weekly decline, pressured by concerns of more supply

entering the market from OPEC+, while Libyan output disruptions

put a floor on prices.

Brent crude futures for October delivery, which

expire on Friday, were down $1.10, or 1.38%, at $78.84 a barrel

by 11:34 a.m. EDT. U.S. West Texas Intermediate crude

futures slipped $1.95, or 2.57%, to $73.96.

Both benchmarks had a day earlier settled more than $1

higher.

OPEC+ is set to proceed with a planned oil output hike from

October, as the Libyan outages and pledged cuts by some members

to compensate for overproduction counter the impact of sluggish

demand, six sources from the producer group told Reuters.

"OPEC+ talking about going ahead with tapering off

production cuts was the headline that really sunk us today,"

said Phil Flynn, analyst with Price Futures Group.

More than half of Libya's oil production, or about 700,000

barrels per day, was offline on Thursday and exports were halted

at several ports following a standoff between rival political

factions.

Production losses could reach between 900,000 and 1 million

bpd and last for several weeks, according to consulting firm

Rapidan Energy Group.

Iraqi supplies are also expected to shrink after the

country's output surpassed its OPEC+ quota, a source with direct

knowledge of the matter told Reuters on Thursday.

Iraq plans to reduce its oil output to between 3.85 million

and 3.9 million bpd next month.

Meanwhile, investors responded to new data on Friday that

showed U.S. consumer spending increased solidly in July,

suggesting the economy remained on firmer ground early in the

third quarter and arguing against a half-percentage-point

interest rate cut from the Federal Reserve next month.

Lower rates can boost economic growth and demand for

oil.

"That modest inflation increase could basically solidify

that we will only get a quarter percentage-point cut and those

hoping for a half will have to wait," said Price Futures Group's

Flynn.