Oil declines as Kuwait to Nigeria boost OPEC crude production

*A drilling rig operating in Soku.

*A drilling rig operating in Soku.

*Iranian oil output climbs 60,000 barrels a day last month
*China purchasing managers index drops for 6th month in January

01 February 2016, London —
Oil halted its longest run of gains this year as Kuwait and Nigeria helped boost crude production from OPEC, exacerbating a global glut.

Futures lost as much as 1.7 percent in New York after earlier rising as much as 1.7 percent. Output from the Organization of
Petroleum Exporting Countries climbed to 33.11 million barrels a day in January as Iran pumped a further 60,000 barrels a day, according to data compiled by Bloomberg. China’s purchasing managers index dropped to 49.4 in January, the National Bureau of
Statistics said Monday. Numbers below 50 indicate deterioration.

Oil slid 9.2 percent in January as volatility in global markets added to concern over brimming U.S. stockpiles and the outlook for increased exports from Iran after international sanctions were removed. Chevron Corp. posted a fourth quarter loss, its first since 2002, which may presage a wave of writedowns as the other super-majors begin reporting results. Exxon Mobil Corp. and BP Plc are scheduled to report Tuesday.

“Unless we begin to see some tangible news emerge on production cuts, we’re getting toward the limits of this rally,” Ric Spooner, a chief analyst at CMC Markets in Sydney, said by phone. “Oil will struggle to get past $36.”

West Texas Intermediate for March delivery dropped as much as 56 cents to $33.06 a barrel on the New York Mercantile Exchange and was at $33.17 at 9:32 a.m. Hong Kong time. The contract climbed 40 cents to $33.62 a barrel on Friday to cap a 4.4 percent weekly increase. Total volume traded was more than double the 100-day average.

Brent for April settlement declined as much as 58 cents, or 1.6 percent, to $35.41 a barrel on the London-based ICE Futures Europe exchange. The March contract expired Friday after advancing 85 cents to $34.74. The European benchmark crude was at a premium of 64 cents to WTI for April.
*Ben Sharples, www.cmcmarkets.co.uk – Bloomberg

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