Oil’s rapid run of declines kicks up pressure as Opec gathers

It’s all eyes on Opec as US oil prices fell for 10 consecutive days, wiping out any gains for the year.

Futures in New York slid 0.8% to settle at $60.19 a barrel on Friday, a day after falling into a bear market on concerns growing supplies will overwhelm the market, as the US offered nations waivers to continue buying Iranian oil. The plunge will push Opec and its allies into a corner as they gather in a highly-anticipated meeting this weekend that could yield a signal on future production cuts.

Crude’s slump from its earlyOctober peak above $76 a barrel comes as US production is at a record, Opec output is at the highest since 2016, more Iranian crude might make it to market then previously thought and demand growth remains a concern.

WTI futures fell 4.7% this week. Total volume traded was about 44% above the 100day average on Friday, while a measure of oil market volatility jumped to the highest level since late 2016.

Brent futures for January settlement fell 47 cents to end the session at $70.18 a barrel on the London-based ICE Futures Europe exchange, the lowest since April 9. The global benchmark crude traded at a $9.82 premium to January WTI.

A potential agreement by Opec to return to output cuts would mark the second production U-turn for the group this year.