Oil Trades Near Eight-Month Low Before OPEC Meeting - report
Oil traded near its lowest closing price in eight months in New York before the Organization of Petroleum Exporting Countries meets to discuss potential changes to its production ceiling, Bloomberg reported.
It said futures fluctuated, rising as much as 0.6% after earlier falling for the fifth time in six days. OPEC, which convenes in Vienna today, will probably maintain its output ceiling as concern that global growth is shrinking outweighs calls for supply cuts to stem sliding crude prices, three of the group's ministers said. Oil advanced after approaching a technical support level, data compiled by Bloomberg showed.
Oil for July delivery was at US$82.76 a barrel, up 14 cents, in electronic trading on the New York Mercantile Exchange at 1.40 p.m. London time. It earlier fell 0.4% to US$82.27. The contract slid 0.8% yesterday to US$82.62, the lowest close since Oct. 6. Prices are down 16% this year.
Brent oil for July settlement, which expires today, dropped 39 cents to US$96.74 a barrel on the London-based ICE Futures Europe exchange. The more-actively traded August future fell 40 cents to US$96.32. The European benchmark contract's premium to New York-traded West Texas Intermediate narrowed to US$13.98 from US$14.51 yesterday.
Oil in New York has technical support along its 200-week moving average, according to data compiled by Bloomberg. Futures last week halted their decline near the indicator, which is at US$80.80 a barrel this week. Buy orders tend to be clustered near chart-support levels.
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