Oil dropped for a second day as Iran bolstered crude exports and Russia signaled the Persian Gulf nation won’t join major producers in freezing output to reduce a global glut.

Futures fell 2.3 percent in New York adding to Monday’s 3.4 percent decline. Iran has “reasonable arguments” for not joining an alliance to cap output now, Russian Energy Minister Alexander Novak said after meeting with his Iranian counterpart. Iranian production climbed last month by the most in almost two decades following the end of sanctions, OPEC said on Monday. U.S. supplies probably rose last week, keeping stockpiles at the highest since 1930.

Oil has rebounded after slumping to a 12-year low this year on speculation stronger demand and falling U.S. output will ease a surplus. Talks on the freeze are most likely to occur in Qatar’s capital Doha next month, according to Gulf Organization of Petroleum Exporting Countries delegates.

West Texas Intermediate oil for April delivery dropped 84 cents to close at $36.34 a barrel on the New York Mercantile Exchange. It’s the lowest settlement since March 4.

Brent for May settlement declined 79 cents, or 2 percent, to $38.74 a barrel on the London-based ICE Futures Europe exchange. The global benchmark closed at a 66-cent premium to WTI for May delivery.

Source : Bloomberg