Oil headed for the first weekly drop since March amid speculation OPEC will maintain its output target at a meeting on Friday, leaving the market oversupplied.
Futures were little changed in New York, poised for a 4 percent decline through June 5. The Organization of Petroleum Exporting Countries will continue its battle to retain market share, according to Maria van der Hoeven, the executive director of the International Energy Agency. The 12-member group is forecast to keep its daily production target of 30 million barrels unchanged at the meeting in Vienna.
Oil recovery from a six-year low has faltered near $60 a barrel amid signs a global glut will persist as rising prices spur a recovery in U.S. output. Saudi Arabia has defended its strategy of favoring market share over supporting prices after leading a group decision in November not to lower OPEC’s target.
West Texas Intermediate for July delivery was unchanged at $58 a barrel in electronic trading on the New York Mercantile Exchange at 10:17 a.m. Sydney time. The contract fell $1.64, or 2.8 percent, on Thursday. The volume of all futures traded was about 85 percent below the 100-day average.
Brent for July settlement was 9 cents higher at $62.12 a barrel on the London-based ICE Futures Europe exchange. The contract decreased $1.77, or 2.8 percent, to $62.03 a barrel on Thursday. It’s down 5.3 percent this week, the most in almost three months. The European benchmark crude traded at a premium of $4.14 to WTI.
Source : Bloomberg