Oil extended declines following the biggest drop in more than a month after U.S. producers increased drilling as the market contends with an overhang of crude and fuel inventories.
Futures slid as much as 1.7 percent in New York after losing 3.7 percent Friday. Rigs targeting crude rose for a second week to 414, the most since February, according to data from Baker Hughes Inc. Members of the Organization of Petroleum Exporting Countries and other producers meeting in Algiers this month are considering a deal that will involve each country agreeing to voluntary output caps, shifting from a freeze on production.
Oil has fluctuated since rallying in August amid speculation OPEC and Russia would agree on measures to stabilize the market later this month. All solutions are possible, Algeria’s energy minister said Friday when asked if producers could raise output within the framework of a freeze. A deal to cap production was proposed in February but a meeting in April ended with no final accord.
West Texas Intermediate of October delivery lost as much as 80 cents to $45.08 a barrel on the New York Mercantile Exchange and was at $45.37 at 7:51 a.m. in Hong Kong. The contract dropped $1.74 to $45.88 a barrel on Friday, falling the most since Aug. 1. Total volume traded was about 32 percent above the 100-day average. Prices rose 3.2 percent last week.
Brent for November settlement dropped as much as 71 cents, or 1.5 percent, to $47.30 a barrel on the London-based ICE Futures Europe exchange. The contract lost $1.98 to $48.01 on Friday, the most since July 13. The global benchmark crude was at a premium of $1.64 to WTI for November.
By Ben Sharples.