West Texas Intermediate for October delivery fell as much as $1.05 to $47.05 a barrel on the New York Mercantile Exchange and was at $47.08 at 12:34 p.m. in London. The contract rose 69 cents to close at $48.10 on Tuesday. Total volume traded was about 22 percent above the 100-day average. Brent for October settlement lost as much as 89 cents, or 1.8 percent, to $49.07 a barrel on the London-based ICE Futures Europe exchange. Prices climbed 1.6 percent to $49.96 on Tuesday. The global benchmark crude traded at a $2.21 premium to WTI. Prices jumped yesterday after Reuters reported that Iran is sending “positive signals” it may support joint action to bolster the oil market, citing unidentified people in OPEC and the oil industry. Iran hasn’t decided whether to join any action, according to the people. A spokesman for the country’s oil ministry on Wednesday told Bloomberg that Iran’s decision to attend the meeting in Algiers in September could be made as late as one day before the event. click read more below for the rest of the article
Oil fell, compounding a monthly decline, after U.S. crude inventories were said to rise by more than expected.
Futures in New York fell 0.6 percent, set for the first monthly drop since February. On Wednesday, the American Petroleum Institute was said to report a 1 million barrel increase in crude stockpiles, double the gain forecast in a Bloomberg survey of analysts. Prices have declined about 4 percent since Saudi Arabia and Russia last week proposed to phase out supply curbs by OPEC and its allies.
Oil had surged earlier this month — with benchmark Brent climbing above $80 a barrel — driven by Donald Trump’s decision to renew American sanctions on OPEC member Iran and as Venezuelan output plunged amid an economic crisis. More recently, prices have been weighed down by concerns over the Saudi-Russia plan to revive output, as well as fears over U.S.-China trade frictions and European political turmoil.
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