Oil fell after the longest run of gains in four years as Iraq seeks to increase exports amid a global overhang of crude inventories and as Nigerian militants call an end to hostilities.
Futures fell as much as 2 percent in New York after climbing 16 percent over the previous seven sessions amid speculation informal OPEC talks next month may lead to action to stabilize the market. Iraq will boost crude shipments by about 5 percent in the next few days after an agreement to resume exports from three oil fields in Kirkuk. The Niger Delta Avengers declared an end to attacks on oil infrastructure and will conduct talks with the government, according to a statement on the website that says it represents the group.
Oil climbed more than 20 percent to enter a bull market on Thursday, less than three weeks after it tumbled into a bear market. Russian Energy Minister Alexander Novak said that the nation was open to discussing an output freeze, while Chakib Khelil, former president of the Organization of Petroleum Exporting Countries, said the group is on course to agree to cap output because its biggest members are pumping flat-out. A similar plan was proposed in February, but a meeting in April ended with no accord.
“Given the huge rally, it’s not surprising to see some softening,” said Angus Nicholson, a market analyst in Melbourne at IG Ltd. “The price is probably more sensitive than usual to any negative news.
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