WTI Poised for Weekly Drop as China Cuts Manufacturing Capacity

West Texas Intermediate was poised for the first weekly drop in more than a month amid rising crude output in the U.S. and speculation that China’s plans to cut excess manufacturing capacity will curb fuel demand.

Futures fell as much as 0.9 percent, heading for a weekly loss of 3.1 percent. China ordered more than 1,400 companies in 19 industries to cut excess production capacity this year, part of efforts to shift toward slower, more-sustainable economic growth. U.S. oil output surged to a 22-year high while refiners cut processing, government data showed on July 24. Prices will extend their decline next week, a Bloomberg News survey of analysts predicted.