Brent crude fell close to $60 a barrel as the United Arab Emirates said OPEC will resist output cuts even if prices slump as low as $40. West Texas Intermediate extended its slump from the lowest in more than five years.
Futures slid as much as 2.5 percent in London and 2.7 percent in New York. The market will stabilize itself and the Organization of Petroleum Exporting Countries will wait at least three months before considering an emergency meeting, U.A.E Energy Minister Suhail Al-Mazrouei said. The International Energy Agency cut its 2015 demand forecast by 230,000 barrels a day last week, trimming the estimate for the fourth time in five months.
Oil has lost more than 20 percent since OPEC decided at a meeting in Vienna last month to maintain its production target, resisting calls from members including Venezuela to cut output. Drillers in the U.S., pumping crude at the highest rate in more than three decades, idled the most rigs in almost two years as prices sank further.
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