Oil headed for a third weekly drop as U.S. crude output rose to a two-year high and Chinese refining slowed, signs that the world’s two biggest consumers may stymie OPEC-led efforts to trim a global glut.
Futures were little changed in New York, down 3.2 percent for the week. U.S. production had the biggest weekly advance since June, according to Energy Information Administration data on Wednesday, offsetting the largest decline in stockpiles in almost a year. Oil processing in China fell in July, the biggest decline for that particular month in three years, figures from the National Bureau of Statistics showed Monday.
Oil this month has fluctuated in the tightest range since February as production cuts by the Organization of Petroleum Exporting Countries and its allies drain a surplus more slowly than expected. Brent crude prices will struggle to climb above $60 a barrel during the next five years because of plentiful supplies from both OPEC and U.S. shale, according to Citigroup Inc.
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