Oil held its biggest loss in three weeks before weekly U.S. crude inventory and production data as the market awaits comment from the Nigerian government on a proposal by militants to end hostilities.
October futures fell as much as 0.5 percent in New York after declining the first time in eight days on Monday. Crude stockpiles probably dropped by 1 million barrels last week, according to a Bloomberg survey before a report from the Energy Information Administration on Wednesday.
The cease-fire declared by Niger Delta Avengers should be viewed with caution, according to analysts from Commerzbank AG and Global Risk Management.
Oil climbed more than 20 percent to enter a bull market on Thursday, less than three weeks after it tumbled into a bear market. Prices were driven higher partly by speculation that informal talks among members of the Organization of Petroleum Exporting Countries next month may lead to action to stabilize the market.
West Texas Intermediate for October delivery lost as much as 25 cents to $47.16 a barrel on the New York Mercantile Exchange and was at $47.22 a barrel at 8:08 a.m. in Hong Kong. The September contract expired Monday after dropping $1.47 to close at $47.05, snapping the longest run of gains since 2012. Total volume traded was about 52 percent below the 100-day average.
Brent for October settlement lost as much as 15 cents, or 0.3 percent, to $49.01 a barrel the London-based ICE Futures Europe exchange. Prices slipped $1.72, or 3.4 percent, to settle at $49.16 a barrel on Monday. The global benchmark traded at a $1.81 premium to WTI.
By: Ben Sharples (Bloomberg News).
Photo: Business Times, Singapore.
Review: Emerging Market Formulations & Research Unit, FLAGSHIP RECORDS.
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