Global oil prices ease on profit booking

New Delhi: International crude oil prices fell on Monday as traders posted profits after the recent price spike.

The Brent December contract was at $97.11 a barrel, down 0.83% from its previous close. The West Texas Intermediate (WTI) November contract fell 0.72% to $91.97 a barrel.

Investors took profits after crude prices rose about 4% on Friday. They were up for five consecutive trading sessions, following OPEC+’s decision to cut production by 2 million barrels a day from November.

Ravindra Rao, Head of Commodities Research at Kotak Securities, said: “Brent and WTI Crude were the best performers last week, with the two up 12% and 17% respectively, marking the biggest weekly gains since March.OPEC+ announced a production cut of 2 million barrels per day, their biggest supply cut since 2020, combined with threats from Russia to massively cut production, supported prices. US dollar selling from higher levels also supported the bullish case.”

“However, renewed dollar strength could limit oil price gains. A corrective drop towards $90/barrel followed by $88 cannot be ruled out, provided you hold $95 on the upside,” he said. declared.

According to Sriram Iyer, senior research analyst at Reliance Securities, crude prices have started to decline as growing recession fears offset gains from OPEC+ production cuts.

“The US dollar also remained strong and weighed on prices,” Iyer added.

The reduction in production was announced in order to support prices which have been largely down since June.

The market is expected to rise further with the prospect of a price cap on Russian gas supplies from the European Union. Additionally, the likelihood of weaker demand with high inflation globally and rising interest rates is likely to weigh on prices.

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