Oil Set for Weekly Drop as Resilient Supply Seen Sustaining Glut
published Sep 15th 2016, 5:56 pm, by Perry Williams
Oil headed for a weekly loss on speculation a global crude glut will persist as disrupted supply returns and demand growth slows.
Futures fell 0.7 percent in New York, extending a weekly decline to 5 percent. OPEC members Libya and Nigeria, whose supplies have been reduced by domestic conflicts, are preparing to boost exports within weeks. The oil surplus will last longer than previously thought as demand growth slumps and output proves resilient, the International Energy Agency said Tuesday.
Oil has fluctuated since rallying in August amid speculation the Organization of Petroleum Exporting Countries and Russia would agree on measures to stabilize the market at a meeting in Algiers later this month. All 14 member countries will attend the meeting Sept. 27 in Algiers, according to an official with knowledge of the plans.
West Texas Intermediate for October delivery fell 32 cents to $43.59 a barrel on the New York Mercantile Exchange at 8.53 a.m in Sydney. Prices on Thursday gained 0.8 percent to close at $43.91 a barrel. Total volume traded was about 63 percent below the 100-day average.
Brent for November settlement rose 74 cents, or 1.6 percent, to settle at $46.59 a barrel on the London-based ICE Futures Europe exchange on Thursday. The global benchmark closed at a $2.07 premium to WTI for November delivery.
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