Oil declined for a second day in New York before reports that may show slowing economic growth in the U.S. and China, curbing fuel demand in the world’s two largest fuel consumers.
More, oil prices fell to below $99 a barrel Monday in Asia, extending a big loss from Friday after a report said Saudi Arabia plans to boost its crude production.
Saudi newspaper al-Hayat reported Friday that the country will increase production 13 per cent, or about 1.14 million barrels per day, to boost global supplies and help lower prices. We remind you that last week OPEC failed to reach an agreement on crude production for the first time in at least 20 years, after six countries opposed a Saudi Arabia-led group that urged members to raise output as oil trades above $100 a barrel.
“It was one of the worst meetings we’ve ever had,” Saudi Arabian Oil Minister Ali al-Naimi said as representatives of the 12-member group left the meeting in Vienna after five hours of talks.
By 03:15 pm, US crude futures slipped by 75 cents to $98.54 a barrel. Brent crude dipped by 34 cents to $118.44.
“Signs of slowdown are everywhere,” Oliver Jakob with Petromatrix said.
ICE Brent for July delivery was 25 cents down at $119.32 a barrel at 6:09, having risen to a high of $120.07 earlier, the highest since May 5.
The contract pared gains following a strong rally over the course of the week.
U.S. crude also reversed early gains to trade down 67 cents at $101.26 a barrel.