Oil fell for the third day. A deepening global slowdown appeared to coincide with a surge in supply from OPEC producers.
West Texas Intermediate futures fell toward $88 a barrel after falling about 5% in the previous two sessions. Growing signs of an economic downturn filtered through markets on Monday. Bearish U.S. data, including cooling manufacturing, followed weaker-than-expected Chinese figures.
Investors also face the prospect of increased supply as demand moderates. Libya pumping more and Iran moving closer to reviving a nuclear deal that will likely see higher crude flows. Fast time spreads are also signaling that concerns about tight global markets are easing.
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Iran sent the European Union its official response to the bloc’s proposal to revive the 2015 nuclear deal. After signaling it might be closer to a deal with the United States. Foreign Minister Hossein Amirabdollahian said an agreement can be reached with Washington. The agreement is to restore the beleaguered deal in the coming days “if the United States shows a realistic approach and flexibility.”
