NEW DELHI : International crude oil prices declined 0.83% on Monday as traders booked profits after the recent surge in prices.
Around 3 pm, the December contract of Brent was at $97.11 a barrel. The November contract of West Texas Intermediate (WTI) also fell by 0.72% to $91.97 a barrel.
Investors had booked profits following the rise in crude prices by around 4% on Friday. The price rose for five consecutive trading sessions after the Organization of the Petroleum Exporting Countries and its allies (OPEC+) decided to cut output by 2 million barrels per day starting November.
“Both Brent and WTI crude were outperformers last week, rallying by 12% and 17%, respectively, marking the biggest weekly gains since March. OPEC+ announced output cut of 2 million barrels per day. Their biggest supply cut since 2020, combined with Russia’s threats to massively curb production, supported prices. Selling in the US dollar from higher levels also supported the bull case,” said Ravindra Rao, head of commodity research at Kotak Securities. “However, renewed dollar strength might limit the gains in oil prices,” he said.
Crude prices were weaker as rising recession fears offset the gains because of output cuts, said Sriram Iyer, senior research analyst at Reliance Securities. “The dollar also remained elevated and weighed on prices,” Iyer said.
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