Oil Futures Plow Lower, Falling Below $94

Benchmark U.S. crude-oil futures fell Tuesday, adding to their run of losses ahead of a key review of Organization of the Petroleum Exporting Countries (OPEC) production targets later this week.

Crude for July delivery  fell 33 cents, or 0.3%, to $93.83 a barrel in electronic trade.

Floor trading on the New York Mercantile Exchange, which was closed Monday for the U.S. Memorial Day holiday, was slated to resume Tuesday.

Crude futures on Monday lost 57 cents, or 0.6%. Monday’s electronic transactions will be booked with Tuesday’s trades for settlement.

The front-month contract for Nymex crude extended last week’s loss of 2%, which were blamed in part on data showing China’s manufacturing sector swung to contraction in May after months of slowing growth, a worrisome development from the world’s second-largest economy.

Brent crude oil for July delivery , however, moved higher, by 4 cents to $102.66 a barrel Tuesday on London-based ICE Futures. Last week, Brent futures fell 2.1%.

The current level of oil prices are “fair” and aren’t hurting consumers or prospects for recovery in the global economy, United Arab Emirates Energy Minister Suhail Mohammed al Mazrouei reportedly said Monday.

Meanwhile, Venezuela’s Oil Minister Rafael Ramirez said Monday the country will be open to a cut in oil production if OPEC members decide such a move will help maintain prices at $100 a barrel.

OPEC members are expected to maintain their supply target at about 30 million barrels a day when they meet in Vienna on Friday.

In other energy trading, natural gas for June delivery rose 2 cents, or 0.1%, to $4.26 per million British thermal units.

June gasoline   lost 1 cent, or 0.3%, to $2.83 a gallon, while June heating oil rose 1 cent, or 0.3%, to $2.87 a gallon.

Ahram