Oil Holds Loss Near $37 as Iran Spurns Production Freeze Accord

Oil held its decline as Russia signaled Iran won’t join major producers in freezing output to manage a global glut.

Futures were little changed New York after falling from a three-month high Monday. Iran has “reasonable arguments” for not joining an output freeze now, Russian Energy Minister Alexander Novak said after meeting with his Iranian counterpart. Talks on the production cap are most likely to occur in Qatar’s capital Doha next month, three Gulf OPEC delegates said. U.S. stockpiles probably expanded last week, keeping supplies at the most since 1930.

“Supply is still the key factor for the market,” David Lennox, an analyst at Fat Prophets in Sydney, said by phone. “If there is a meeting and it does result in a decision on definitive action, that will be positive for prices, but history is against anything happening,”

Oil has rebounded after slumping to a 12-year low this year on speculation stronger demand and falling U.S. output will ease a surplus. Iranian production increased last month by the most in almost two decades following the end of international sanctions, the Organization of Petroleum Exporting Countries said in its monthly report Monday. Supply from Saudi Arabia was mostly unchanged.

West Texas Intermediate for April delivery fell 14 cents to $37.04 a barrel on the New York Mercantile Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term at 10:43 a.m. Hong Kong time. The contract dropped $1.32 to $37.18 on Monday from $38.50 on Friday, the highest close since Dec. 4. Total volume traded was about 36 percent below the 100-day average.

Brent for May Settlement Settlement Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Read this Term was 21 cents lower at $39.32 a barrel on the the London-based ICE Futures Europe exchange. The contract declined 86 cents, or 2.1 percent, to $39.53 on Monday. The global benchmark was at a premium of 65 cents to WTI for May.

--With assistance from James Paton To contact the reporter on this story: Ben Sharples in Hong Kong at bsharples@bloomberg.net. To contact the editors responsible for this story: Ramsey Al-Rikabi at ralrikabi@bloomberg.net, Ovais Subhani

By: Ben Sharples

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