Bloomberg SINGAPORE (Bloomberg) — Oil declined below $66 a barrel as an industry report showing U.S. stockpiles expanded raised concern among investors who are already worried the Organization of Petroleum Exporting Countries may soon end output cuts.
Futures in New York dropped as much as 1.3 percent after the American Petroleum Institute was said to report nationwide crude inventories rose last week.
That compares with forecasts for a slide in supplies ahead of government data Wednesday.
Meanwhile, Russia, which has already started increasing output, is said to propose that OPEC and its allies be allowed to return production to October 2016 levels within three months.
Oil has retreated from the highs of May as Saudi Arabia and Russia signaled they may increase output later this year to offset potential supply losses from Iran and Venezuela, while U.S. President Donald Trump adds pressure to temper oil prices.
Investors are looking for signs of whether OPEC will reach a consensus on the easing proposal, with the group set for a fractious meeting in Vienna next week.
OPEC emphasized the deep uncertainty over the strength of demand.