Oil prices hit 10-month low according to OPEC+ output boost report By Reuters

© Reuters. FILE PHOTO: Pump jacks operate at sunset in Midland, Texas, U.S., February 11, 2019. REUTERS/Nick Oxford

By Noah Browning

LONDON (Reuters) – Oil prices fell to their lowest level since early January on Monday after the Wall Street Journal reported that Saudi Arabia and other OPEC oil producers were discussing a price hike. the production.

futures for January had slid $4.07, or 4.7%, to $83.55 a barrel as of 3:18 p.m. GMT.

U.S. West Texas Intermediate (WTI) crude futures for December fell $4.02, or 5%, to $76.06 before the contract expires later on Monday. The most active January contract was down $3.82, or 4.8%, at $76.29.

An increase of up to 500,000 barrels per day (bpd) will be discussed at the OPEC+ meeting on December 4, the Wall Street Journal reported.

Reuters was not immediately able to verify the report.

The Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, recently cut production targets and the de facto head of Saudi Arabia’s energy minister was cited this month as having declared that the group would remain cautious.

Meanwhile, supply fears largely subsided as concerns over Chinese fuel demand and the strength of the US dollar weighed on prices.

Expectations of further interest rate hikes supported the greenback, making dollar-denominated commodities more expensive for investors.

“Apart from the weakening demand outlook due to COVID restrictions in China, a rebound in the US dollar today is also a bearish factor for oil prices,” said CMC Markets analyst Tina Teng.

“Risk sentiment is becoming fragile as all recent economic data from major countries point to a recessionary scenario, particularly in the UK and the eurozone,” she said, adding that hawkish comments from the US Federal Reserve last week also raised concerns about the US economy. prospects.

The number of new COVID cases in China remained near April peaks as the country battles nationwide outbreaks.

The first-month Brent futures spread narrowed sharply last week as WTI moved into contango, reflecting diminishing supply concerns.

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