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Futures slid as much as 1.2 percent in New York after losing 2 percent Tuesday, the first drop in seven sessions. Inventories rose by 1.78 million barrels last week, the American Petroleum Institute was said to report. A Bloomberg survey showed nationwide stockpiles fell for a fifth week. OPEC output climbed in July as Libya boosted supply, according to a Bloomberg survey of analysts, oil companies and ship-tracking data. “Prices are under pressure as the recent gains are seen as unsustainable,” said Eugen Weinberg, head of commodities research at Commerzbank in Frankfurt. “The API is contributing to the overall situation, and should the DOE data confirm the trend, it’s likely to weigh on prices,” he said, referring to the U.S. Department of Energy figures due for release on Wednesday. Click Read More below for additional details.
On Saturday, Iran's deputy oil minister said the country "saw no reason" to attend the talks because it needs to get back to the level it produced before worldwide sanctions against Tehran. Prices had rebounded last week on hopes the OPEC exporters' club and other major players, including Russian Federation, would agree to freeze output levels at Sunday's meeting. Crude oil prices remained lower after major oil-producing nations failed to hammer out a deal over the weekend to reduce output. "We believe prices will rise regardless what OPEC does or does not do as USA shale oil production, not Saudi Arabia, will be the new swing producer", Gheit said. "Delegates said Saudi Arabia had in effect torn up an earlier draft of the deal as it decided it could not be party to an agreement that would give Iran any leeway".