Oil traded near $60 a barrel amid rising violence in the Middle East before OPEC meets to discuss its production quota next month.
Futures were little changed in New York. Iraq’s Prime Minister vowed a swift takeover of the city of Ramadi from Islamic State militants, while Saudi Arabia’s King vowed to punish those responsible for a suicide attack on Shiite-Muslim worshipers in his nation. There was no floor session Monday on the Nymex because of the Memorial Day holiday, and transactions will be booked Tuesday for settlement purposes.
Oil’s rebound from a six-year low is faltering near $60 a barrel amid speculation a global glut will persist as rising prices spur a recovery in U.S. production. The Organization of Petroleum Exporting Countries has exacerbated the surplus by resisting calls to cut supply as it focuses on maintaining market share. The group meets in Vienna June 5.
West Texas Intermediate for July delivery was at $59.86 a barrel in electronic trading on the New York Mercantile Exchange, up 14 cents from the May 22 close at 10:12 a.m. Sydney time. The contract fell $1 to $59.72 on Friday. Prices have increased 12 percent this year.
Brent for July settlement rose 6 cents, or 0.1 percent, to $65.58 a barrel on the London-based ICE Futures Europe exchange on Monday. The European benchmark crude ended the session at a premium of $5.65 to WTI on Friday.