Oil Prices Near 2-Month Lows

Oil Prices Near 2-Month Lows
Oil Prices Near 2-Month Lows

Oil prices dropped to trade near two-month lows on Monday, having earlier slid by around $1 a barrel, as supply fears receded while concerns over fuel demand from China and US dollar strength weighed on prices.
Brent crude futures for January had slipped 74 cents, or 0.8%, to $86.88 a barrel, reported.
US West Texas Intermediate crude futures for December were at $79.40 a barrel, down 68 cents or 0.9%, ahead of the contract's expiry later on Monday. 
The more active January contract last fell 59 cents or 0.7% to $79.52 a barrel.
Both benchmarks closed Friday at their lowest since Sept. 27, extending losses for a second week, with Brent down 9% and WTI 10% lower.
"Apart from the weakened demand outlook due to China's Covid curbs, a rebound in the US dollar today is also a bearish factor for oil prices," said Tina Teng, a CMC Markets analyst.
"Risk sentiment becomes fragile as all the recent major countries' economic data point to a recessionary scenario, especially in the UK and eurozone," she said, adding that hawkish comments from the US Federal Reserve last week also sparked concerns over the US economic outlook.
New Covid case numbers in China remained close to April peaks as the country battles outbreaks nationwide and in major cities. 

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