Oil retreated, halting the longest run of gains in four years as Iraq sought to increase exports amid a global oversupply and Nigerian militants called an end to hostilities.

Futures slid by 3 percent in New York after climbing 16 percent the previous seven sessions in a rally fueled by speculation that OPEC talks in September may lead to an output freeze. Iraq will boost crude shipments by about 5 percent in the next few days following an agreement to resume exports from three oil fields in Kirkuk. The Niger Delta Avengers declared an end to attacks on oil infrastructure and will conduct talks with the government, according to a statement on a website that says it represents the group.
“Certainly, the news out of Nigeria, Iraq was a catalyst to get this market a bit lower,” Bart Melek, head of global commodity strategy at TD Securities in Toronto, said by telephone. “We had a nice, robust rally into bull market territory. With that, I think the market is somewhat uncomfortable to take it much higher.”

Bull Market