REUTERS
Oil declined for a second day after another Russian official ruled out cooperation on production cuts with the Organization of Petroleum Exporting Countries (OPEC), adding to signs that a global oversupply will persist, Bloomberg reported.
Russia won't join OPEC and isn't able to cut production in the same way, said OAO Rosneft Chief Executive Officer Ihor Sechin. Russia's Deputy Prime Minister Arkady Dvorkovich said last week there is no way the country can artificially reduce supply, according to the report.
Oil has fluctuated the past three weeks as concerns over slowing demand in China fueled volatility in global markets. Prices have dropped more than 25% from this year's closing peak in June on signs the surplus will persist. OPEC members are sustaining output and U.S. crude stockpiles remain almost 100 million barrels above the five-year seasonal average.
"Russia's comments on the market are having some impact on prices today," Bjarne Schieldrop, Oslo-based chief commodities analyst at SEB AB, said.
"There's some positive data coming from U.S. rig counts for example, and that could be positive for oil prices this week," he said.
Another factor exerting pressure on world oil prices is, according to the report, the decline of the Chinese stock market. The Shanghai Composite Index closed 2.5% lower at 3,080.42, erasing an earlier 1.8% advance.
Oil prices have a direct impact on the Russian currency. After Brent declined to $47.63 per barrel, the Russian ruble fell against the dollar to 69 rubles.