He Crude oil fell about 2 percent on Monday to a three-week lowdue to the expiry of the Brent contract at higher prices, the strengthening of the dollar and profit taking by operators, concerns about the expected increase in supply and pressure on demand due to high interest rates.
Crude oil futures contract Brent for December fell $1.49, or 1.62 percent to $90.71 per barrel. US crude oil West Texas Intermediate gave up $1.97 or 2.17 percent to $88.82. Both contracts added to their third daily decline.
According to analysts, Some traders took profits after crude oil prices rose nearly 30 percent in the third quarter, to its highest level in 10 months, amid expectations of a large crude supply deficit in the fourth quarter, after Saudi Arabia and Russia extended additional supply cuts until the end of the year.
On Monday, The dollar rose to a 10-month high against a basket of other currencies after the US government avoided a partial shutdown.
The Organization of the Petroleum Exporting Countries with Russia and other allies, or OPEC+, is unlikely to do so change your current oil production policy at a key meeting on Wednesday, four OPEC+ sources told Reuters.
Speaking at an event on Monday, OPEC Secretary General Haitham Al Ghais said his group was still looking at “Oil demand has been resilient this yearlike a years ago.”
A survey about Reuters show that Monday OPEC oil production increases for the second month in a row in September, led by increases in Nigeria and Iran despite a decline in Saudi Arabia.
Saudi Arabia may start reducing voluntary cuts additional supply of 1 million barrels per day (bpd), ING analysts said in a note on Monday.
Official data on Saturday showed that Factory activity in China expands for the first time in six months in September, adding to a series of indicators showing the world’s second-largest economy has begun to stabilize.
Despite the good news from China, European manufacturing data points to the eurozone, Germany and the UK still mired in recession in September, bad news for oil demand.
PMA
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