NEW YORK:
Oil prices fell about 2% on Monday to a three-week low as a higher-priced Brent contract expired, the US dollar strengthened and traders took profits, concerned about forecasts of rising crude supplies and pressure on demand from high interest rates.
On its first day as the front-month, Brent futures for December delivery fell to $90.78 a barrel by 1524 GMT, down $1.42, or 1.5%, from Friday’s close and also down about 4% from where the November future closed on Friday when it was still the front-month. That was the Brent front-month’s biggest daily percentage decline since late May.
US WTI crude fell $1.90, or 2.1%, to $88.89 per barrel. Both benchmarks were headed for their third daily decline and their lowest settlements since mid-September. Energy analysts cited profit taking after crude prices rose nearly 30% in the third quarter to 10-month highs.
On Monday, the US dollar rose to a 10-month high against a basket of other currencies on the view that US interest rates could stay higher for longer, which could slow economic growth and reduce oil demand.
Published in The Express Tribune, October 3rd, 2023.
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