Oil’s rally to its highest level since 2014 was curtailed this month after two of the world’s biggest crude suppliers signaled they may scale back historic output cuts that helped drain a global glut.
Futures in New York are set for their first monthly drop since February after touching a fresh three-year high early last week. Prices dropped almost 8 percent over five sessions following a Saudi-Russia proposal to phase outsupply curbs that resurrected prices from the biggest crash in a generation. Crude halted its slide Wednesday after the dollar declined by the most in three weeks, boosting the appeal of commodities priced in the U.S. currency.
West Texas Intermediate for July delivery traded at $68.08 a barrel on the New York Mercantile Exchange, down 13 cents, at 11:36 a.m. in Tokyo. The contract is poised for a 0.7 percent drop this month after an 11 percent rally in the previous two months. Total volume traded was about 39 percent below the 100-day average.
Brent futures for July settlement, which expires Thursday, dropped 0.5 percent to $77.10 a barrel on the London-based ICE Futures Europe exchange. The more-active August contract slipped 0.3 percent. The global benchmark traded at a $9.01 premium to WTI for July. Prices are up 2.6 percent this month, slower than the pace of advance in April and March.
Source : Bloomberg