Oil declined for a second day as Venezuela proposed an OPEC summit to stabilize prices amid a global glut.
Futures slid as much as 1.9 percent in New York. Producers from outside of the Organization of Petroleum Exporting Countries including Russia will be invited to the meeting, Venezuelan President Nicolas Maduro told state-owned broadcaster Telesur. Cutting output for a short-term price gain isn’t the cure for the “sickness” affecting global markets, Russian Energy Minister Alexander Novak said Friday.
Oil has slumped more than 25 percent from this year’s closing peak in June on signs the global glut that drove prices to a six-year low will persist. Leading members of OPEC are sustaining output and U.S. crude stockpiles remain almost 100 million barrels above the five-year seasonal average.
West Texas Intermediate for October delivery dropped as much as 87 cents to $45.18 a barrel on the New York Mercantile Exchange and was at $45.22 at 10:44 a.m. Sydney time. The contract slid 70 cents to $46.05 on Friday. The volume of all futures traded was about 26 percent below the 100-day average. Prices have decreased 15 percent this year.
All electronic transactions Monday will be booked with Tuesday’s for settlement purposes because of the Labor Day holiday.
Brent for October settlement lost as much as 83 cents, or 1.7 percent, to $48.78 a barrel on the London-based ICE Futures Europe exchange. The European benchmark crude traded at a premium of $3.64 to WTI.