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By Bloomberg

Oil headed for the longest run of weekly declines since January amid signs the global glut that’s driven prices to the lowest in six years will be prolonged.

Futures were little changed in New York, down 4.2 percent in the week through Aug. 14. The market surplus will last through 2016, the International Energy Agency said Wednesday, while OPEC reported that output climbed last month to the highest level in more than three years. A measure of price fluctuations is poised for a second weekly advance amid mixed demand signals from China.

Oil has slumped more than 30 percent from its June closing peak as leading members of the Organization of Petroleum Exporting Countries maintain output. China’s record imports in July boosted speculation that sustained buying may alleviate a glut, while further devaluation of its currency raised concern that its economy and demand are slowing.

“It’s the ongoing supply that is causing the major worries,” Michael McCarthy, a chief strategist at CMC Markets in Sydney, said by phone. “Statements from OPEC of their increased production is clearly weighing on the price, while focus has turned to Chinese growth.”

West Texas Intermediate for September delivery was at $42.01 a barrel on the New York Mercantile Exchange, down 22 cents, at 1:22 p.m. Sydney time. The contract declined $1.07 to $42.23 on Thursday, the lowest level since March 2009. The volume of all futures traded was 73 percent above the 100-day average. Prices have decreased 21 percent this year.

Global Supplies

Brent for September settlement, which expires Friday, was unchanged at $49.22 a barrel on the London-based ICE Futures Europe exchange. The European benchmark crude traded at a premium of $6.99 to WTI. The more-active October contract was 7 cents lower at $49.56 a barrel.

OPEC raised output by 100,700 barrels a day to 31.5 million in July amid a recovery in Iranian supply, the group said in its monthly market report this week, citing external sources. Saudi Arabia, the group’s biggest member, told OPEC it cut production by the most in almost a year.

Crude stockpiles in the U.S., the world’s biggest oil consumer, remain about 90 million barrels above their five-year average even as production eased and supplies fell last week, according to data from the Energy Information Administration.

The Chicago Board Options Exchange Crude Oil Volatility Index closed at 43.23 on Thursday, the highest level since April. The gauge of hedging costs on the U.S. Oil Fund, the largest exchange-traded fund tracking WTI futures, is up 5 percent this week.