Oil fell from the highest settlement in more than three months as Iran said it plans to boost production.
Futures dropped as much as 0.9 percent in New York after advancing 1.7 percent Friday. Iran plans to boost crude output to 4 million barrels a day before it will consider joining other suppliers in seeking ways to rebalance the global market. Rigs targeting oil in the U.S. fell by 6 to 386, according to Baker Hughes Inc., the least since December 2009. That’s the 12th week of declines.
Oil has recouped its losses this year after slumping to a 12-year low last month amid speculation stronger demand and falling U.S. production will ease a supply glut. Prices may have passed their lowest point as shrinking supplies outside OPEC and disruptions inside the group erode the global surplus, the International Energy Agency said Friday.
West Texas Intermediate for April delivery fell as much as 33 cents to $38.17 a barrel on the New York Mercantile Exchange and traded at $38.41 at 10:01 a.m. Sydney time. The contract climbed 66 cents to $38.50 on Friday. Prices rose 7.2 percent last week. Total volume traded was about 70 percent below the 100-day average.
Brent for May settlement lost as much as 19 cents, or 0.5 percent, to $40.20 a barrel on the London-based ICE Futures Europe exchange. The contract rose 0.9 percent to $40.39 on Friday, capping a 4.3 percent increase for the week. The global benchmark crude was at a premium of 33 cents to WTI for May.