Futures fell as much as 1.5% in New York and 1.9% in London. Japan’s economy shrank an annualized 1.6% in the third quarter, a second successive drop. Iran’s oil minister is preparing to visit the United Arab Emirates this week, according to Shana, the Tehran-based ministry’s news service. The Organization of Petroleum Exporting Countries is scheduled to meet Nov. 27.
Brent has declined about 32% from a June peak as leading OPEC members resisted calls to cut output and instead reduced some export prices while U.S. production climbed to the highest level in more than three decades. Venezuela, Libya and Ecuador have asked for action to support crude as the 12-member group prepares to meet in Vienna.
“The new Japanese data certainly doesn’t help the demand perception,” Bob Yawger, director of the futures division at Mizuho Securities USA Inc. in New York, said by phone. “OPEC will remain in the foreground, putting downward pressure on the market for the foreseeable future, until we get definitive word that they are going to cut output.”
WTI for December delivery decreased 82 cents, or 1.1%, to $75 a barrel at 9:05 a.m. on the New York Mercantile Exchange. Futures touched $73.25 Nov. 14, the lowest intraday price since Sept. 21, 2010. The volume of all futures traded was about 48% above the 100-day average for the time of day.
Brent for January settlement slipped $1.18, or 1.5%, to $78.23 a barrel on the London-based ICE Futures Europe exchange. Volume was 39% lower than the 100-day average. The European benchmark traded at a $3.36 premium to WTI for the same month.
Front-month Brent futures slid an eighth week through Nov. 14, the longest run of declines since the contract began trading in 1988.
The Japanese economy, the world’s third largest, was projected to post a 2.2% gain in the last quarter, according to a Bloomberg survey.
Iran’s OPEC Governor Hossein Kazempour, national representative Mehdi Asali and the country’s head of the oil contracts committee Mehdi Hosseini will accompany minister Bijan Namdar Zanganeh to the U.A.E., Iran’s oil ministry said.
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