Oil Resumes Decline Amid Doubts of Market-Stabilization Deal

(Bloomberg) — Oil declined amid doubts that producers will agree on a deal to stabilize the market when global suppliers meet next month for informal talks.

Futures decreased as much as 2.1 percent in New York. Iran’s plan to continue boosting crude output until it regains its pre-sanctions OPEC market share is dimming prospects of collective action, according to Patrick Allman-Ward, chief executive officer of Dana Gas PJSC. United Arab Emirates Oil Minister Suhail Al Mazrouei said in a Twitter post that the oil market should achieve stability soon. The dollar rose, curbing the appeal of commodities as an investment.

Oil entered a bull market Aug. 18, less than three weeks after tumbling into a bear market, as prices surged partly on speculation that discussions among members of the Organization of Petroleum Exporting Countries may lead to action to stabilize the market. An output freeze was proposed in February, but talks in April ended with no final accord. For a second week, money managers slashed bets on falling West Texas Intermediate crude prices by a record.

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