Oil heads for biggest monthly gain since April before OPEC talks

Oil is poised for the biggest monthly advance since April amid speculation talks among OPEC members in Algeria next month may result in action to stabilize the market.

Futures in New York have risen 11 percent in August. Iraq would support a proposal for OPEC and other major oil producers to freeze output at talks in Algeria next month, Prime Minister Haidar Al-Abadi said in Baghdad. U.S. crude supplies probably climbed by 1.3 million barrels last week, a Bloomberg survey showed before a government report Wednesday.

West Texas Intermediate for October delivery fell 17 cents to $46.18 a barrel on the New York Mercantile Exchange at 7:52 a.m. Tokyo time. The contract declined 63 cents to settle at $46.35 a barrel on Tuesday. Total volume traded was 21 percent above the 100-day average.

Brent for October settlement, which expires Wednesday, decreased 89 cents, or 1.8 percent, to $48.37 a barrel on the London-based ICE Futures Europe exchange on Tuesday. The global benchmark crude ended the session at a $2.02 premium to WTI.