Oil declined for a second day on speculation that OPEC will fail to stabilize prices amid a global oversupply and concern that Chinese demand growth will weaken.
Futures lost as much as 2 percent in New York as the Shanghai Composite Index declined. Russia cannot become a member of the Organization of Petroleum Exporting Countries and may take on “observer status,” OAO Rosneft Chief Executive Officer Igor Sechin said at a conference in Singapore. Prices below $50 a barrel don’t sustain investment, Venezuelan President Nicolas Maduro told state-owned broadcaster Telesur, proposing a summit to address the slump.
Oil has fluctuated the past three weeks as concerns over slowing demand in China fueled volatility in global markets. Prices are down more than 25 percent from this year’s closing peak in June on signs the surplus will persist. OPEC members are sustaining output and U.S. crude stockpiles remain almost 100 million barrels above the five-year seasonal average.
“Oil is following the Chinese equity market lower,” Bjarne Schieldrop, Oslo-based chief commodities analyst at SEB AB, said by phone. “There’s some positive data coming from U.S. rig count for example, and that could be positive for oil prices this week.”
West Texas Intermediate for October delivery dropped as much as 90 cents to $45.15 a barrel on the New York Mercantile Exchange and was at $45.43 at 1:06 p.m. London time. The contract slid 70 cents to $46.05 on Friday. The volume of all futures traded was about 13 percent below the 100-day average. Prices have decreased 15 percent this year.