Oil set for longest losing streak before Opec meet

Vienna: Oil slipped a fourth day, heading for the longest run of declines since April, as Organisation of Petroleum Exporting Countries (Opec) ministers gather in Vienna ahead of a meeting on Thursday to discuss production policy.
Futures fell as much as 1 per cent in New York, after declining 0.9 per cent the previous three sessions. Canadian oil-sand producers, including Suncor Energy, began resuming operations after wildfire threats eased, while supply disruptions continued to reduce output in Nigerian and Libya. The global oversupply that caused prices to slump since 2014 is correcting itself, the United Arab Emirates oil minister said in Vienna on Tuesday.
Oil has surged about 85 per cent since touching a 12-year low in February on signs the global surplus is easing amid declining output. The Opec is unlikely to reach an agreement limiting production this week as the group sticks with Saudi Arabia’s strategy of squeezing out rivals, according to analysts.
“There is very low expectations for anything constructive to come out of this meeting,” Angus Nicholson, a markets analyst in Melbourne at IG, said by phone. “The base-case scenario will be a continuation of Saudi Arabia’s recent announcement where they refuse to commit to any sort of supply freeze if Iran is not party to it.”
West Texas Intermediate for July delivery fell as much 49 cents to $48.61 a barrel on the New York Mercantile Exchange and was at $48.66 in Hong Kong. The contract dropped 23 cents to close at $49.10 on Tuesday. Total volume traded was 18 percent below the 100-day average.
Renewed optimism
Brent for August settlement fell as much as 1.1 per cent to $49.36 a barrel on the London-based ICE Futures Europe exchange. The July contract expired on Tuesday after slipping 7 cents to $49.69 a barrel. The global benchmark crude traded at a 30-cent premium to WTI for August.
China is seeking private companies to build and operate emergency oil reserves to be used during unexpected supply disruptions. Iran plans to invite international companies to bid for oilfield development rights in June, a government official said, as the country seeks to revive its energy industry after years of crippling sanctions. US crude stockpiles probably fell by 2.5 million barrels last week, according to a survey of analysts.