Oil Extends Decline From 5 1/2-Year Low as Supply Glut Lingers – Bloomberg.
Oil fell for a third day, extending its decline from the lowest level in five and a half years amid signs a global supply glut that’s driven crude into a bear market may continue this year.
Futures in London dropped as much as 1.3 percent, after sliding 5.1 percent last week. Iraq plans to boost crude exports this month, according to the oil ministry in the second-largest producer of the Organization of Petroleum Exporting Countries. Venezuela President Nicolas Maduro is traveling to Chinato hold talks on financing and energy and will visit other OPEC member nations to develop an oil-pricing strategy.
“Iraq’s crude production is one of the contributors to the glut we’ve been seeing,” Hong Sung Ki, a commodities analyst at Samsung Futures Inc. in Seoul, said by phone. “The glut is expected to continue if demand fails to catch up with supplies. Venezuela’s oil industry is in recession amid falling production but if it can attract new investments, it can boost output.”
