Oil held below $68 a barrel as investors assessed whether higher OPEC production can offset a potential global supply crunch sparked by sanctions on Iranian crude.
Futures in New York were little changed after declining 3.3 percent in the previous four sessions. Speculation OPEC and allies will offset output declines from American sanctions on Iran grew as Russian Energy Minister Alexander Novak was reported to have signaled the group’s production levels will be kept at higher levels in September. Meanwhile, crude inventories at a key U.S. storage hub are forecast to have increased for the fifth week.
West Texas Intermediate for October delivery traded at $67.58 a barrel on the New York Mercantile Exchange, up 4 cents, at 9:33 a.m. in Tokyo. The contract dropped 21 cents to $67.54 on Monday. Total volume traded was about 78 percent below the 100-day average.
Brent for November settlement rose 8 cents to $77.45 a barrel on the ICE Futures Europe exchange. The global benchmark traded at a $10 premium to WTI for the same month.
Source : Bloomberg