West Texas Intermediate and Brent crudes dropped as investors weighed the possibility that OPEC will agree to cut oil output next week.
Futures retreated 1.4 percent in New York and 1.1 percent in London. OPEC member Venezuela met with Russia to discuss ways to support oil prices, the foreign ministry in Caracas said yesterday. The Organization of Petroleum Exporting Countries, responsible for about 40 percent of global supply, will discuss output at a Nov. 27 meeting in Vienna.
Oil has slumped into a bear market as the U.S. pumps at the fastest pace in more than three decades and growth in demand slows. Japan, the world’s third-biggest consumer, slid into a recession in the third quarter. Traders are also pondering the chances that talks over Iran’s nuclear program could result in an agreement.