“Brent crude fell for a second day as industrial production slowed in China, the world’s second- biggest oil consumer, and Saudi Arabia boosted output.
Futures slid as much as 0.9 percent after gaining 0.4 percent last week, snapping three weeks of declines. Saudi Arabia’s crude production rose in February from a 20-month low, according to an official with knowledge of the country’s oil policy. China started the year with the weakest industrial output since 2009, government data showed March 9. Iran, which is under Western sanctions because of its nuclear program, said the prospects for resolving the dispute have improved.
“We have no reason to rally,” amid rising Saudi output and reduced demand from refiners during seasonal maintenance, Andrey Kryuchenkov, an analyst at VTB Capital in London, said today in an e-mailed response to questions. Brent probably won’t drop below support at $109 a barrel, he said.
Brent for April settlement on the London-based ICE Futures Europe exchange declined as much as 95 cents to $109.90 a barrel and was at $110.15 a barrel as of 11:41 a.m. London time. The volume of all futures traded today was 34 percent above the 100- day average for Brent, and 32 percent lower for West Texas Intermediate. The European benchmark was at a premium of $18.52 to WTI. The gap was at $18.90 on March 8, the narrowest close since Jan. 31.
WTI for April delivery fell as much as 43 cents to $91.52 a barrel in electronic trading on the New York Mercantile Exchange. The contract advanced 39 cents to $91.95 on March 8, the highest close since Feb. 28. Prices have lost 0.4 percent this month.
