Oil fell after the biggest rally in a month in New York as China devalued its currency and OPEC raised output to a three-year high.
West Texas Intermediate futures declined as much as 1.8 percent. China, the world’s second-biggest oil user, cut the yuan’s reference rate by the most in two decades allowing depreciation to combat a slump in exports. OPEC production climbed as Iran pumped the most since sanctions were strengthened in 2012, according to the group’s monthly report.
Oil has dropped more than 25 percent since this year’s peak closing price in June on concern the global surplus that drove crude into a bear market will persist. In July the Bloomberg Commodity Index of 22 raw materials capped the biggest monthly decline since 2011 on faltering demand in China and expanding supply.
West Texas Intermediate for September delivery fell 72 cents to $44.24 a barrel on the New York Mercantile Exchange at 11:31 a.m. London time. The contract gained $1.09 to $44.96 on Monday. The volume of all futures traded was about 70 percent above the 100-day average. Prices have decreased about 17 percent this year.
Source : Bloomberg