Oil extended losses below $60 a barrel amid speculation that OPEC’s biggest members will defend market share against U.S. shale producers. Brent also slid after closing at the lowest price since July 2009.
West Texas Intermediate futures fell as much as 1.9 percent in New York and are down 10 percent this week. Iraq, the second-largest producer in the Organization of Petroleum Exporting Countries, said its decision to widen a discount for January sales to Asia isn’t proof of a price war. Crude will drop further next week, a Bloomberg News survey of analysts and traders shows.
Oil is headed for the 10th weekly decline since October after OPEC decided against reducing its output quota, even as the highest U.S. production in more than three decades exacerbates a global glut. Saudi Arabia, Iraq and Kuwait, the group’s three biggest members, this month widened discounts for shipments to Asia, bolstering speculation that they’re fighting for market share.