West Texas Intermediate crude fell, trimming the biggest rally since August 2012 as investors weighed OPECs decision to let the market curb a global supply glut. Brent was steady in London.
Futures slid 0.3 percent in New York, declining for the fifth time in six days. The Organization of Petroleum Exporting Countries may hold an emergency meeting early next year, Venezuelas Foreign Minister Rafael Ramirez said in an interview with Panorama newspaper. The groups failure to cut output at a gathering last week bodes well for U.S. producers, according to billionaire wildcatter Harold Hamm.
Oil has collapsed into a bear market amid the fastest rate of U.S. production in more than three decades and signs of slowing global demand growth. OPEC, which is responsible for about 40 percent of the worlds supply, resisted calls from members including Venezuela and Iran to reduce its official target of 30 million barrels a day on Nov. 27 in Vienna.
WTI for January delivery dropped 20 cents to $68.80 a barrel in electronic trading on the New York Mercantile Exchange at 12:15 p.m. Sydney time. The contract rose 4.3 percent to $69 yesterday, retracing a loss of as much as 3.7 percent. The volume of all futures traded was about 9 percent below the 100-day average. Prices have decreased 30 percent this year.
Brent for January settlement was 5 cents lower at $72.49 a barrel on the London-based ICE Futures Europe exchange. The European benchmark crude traded at a premium of $3.65 to WTI, compared with $3.54 yesterday.