Oil decreased for the third time in four days as ministers from the Organization of Petroleum Exporting Countries arrive in Vienna to discuss production policy.
Futures slipped as much as 2.3 percent in New York amid a broader decline in commodities. Saudi Arabia will consider all issues at the Friday gathering, Oil Minister Ali al-Naimi said. The American Petroleum Institute was said to report U.S. crude supplies rose 1.6 million barrels last week. The Energy Information Administration is projected to report stockpiles fell 800,000 barrels, according to a Bloomberg survey.
Oil has slumped about 40 percent since Saudi Arabia led OPEC’s decision a year ago to maintain output and defend market share against higher-cost shale producers. Iranian Oil Minister Bijan Namdar Zanganeh sent a letter to the group calling for a cut in excess supply as the group’s production stays near record levels. The world’s largest independent oil traders including Vitol Group said supplies will surpass demand next year.
“The market doesn’t believe that OPEC will do anything and is acting accordingly,” Phil Flynn, a senior market analyst at Price Futures Group in Chicago, said by phone. “The API reported an unexpected supply build, which is bearish. We’ll have to see if the EIA data confirms the build.”