Oil prices hit 10-month low on OPEC+ production boost report


LONDON: Oil prices dropped to their smallest since early January on Monday after the Wall Street Journal reported that Saudi Arabia and other OPEC oil painting directors are agitating an affair increase.

Brent crude futures for January had slipped $4.07, or 4.7, to $83.55 a barrel.

US West Texas Intermediate(WTI) crude futures for December were down $4.02, or 5, at $76.06 ahead of the contract’s expiry latterly on Monday. The more active January contract was down $3.82, or 4.8, at $76.29.

An increase of over to 500,000 barrels per day (BPD) will be bandied at the OPEC meeting on December 4, The Wall Street Journal reported.

Reuters wasn’t incontinently suitable to corroborate the report.

The Organisation of the Petroleum Exporting Countries(OPEC) and its abettors , together known as OPEC, lately cut product targets and de facto leader Saudi Arabia’s energy minister was quoted this month as saying the group will remain conservative.

Meanwhile, force fears have largely retreated while enterprises over Chinese energy demand and US bone strength counted on prices.

Prospects of farther increases to interest rates have buoyed the note, making bone-nominated goods more precious for investors.

“Piecemeal from the weakened demand outlook due to China’s COVID checks, a answer in the US bone moment is also a bearish factor for oil painting prices,” said CMC Markets critic Tina Teng.

“Threat sentiment becomes fragile as all the recent major countries’ profitable data point to a recessionary script, especially in the UK and eurozone,” she said, adding that hawkish commentary from the US Federal Reserve last week also sparked enterprises over the US profitable outlook.

New COVID case figures in China remained close to April peaks as the country battles outbreaks nationwide.

The front- month Brent crude futures spread narrowed sprucely last week while WTI flipped into contango, reflecting abating force enterprises.

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