Oil heads for third monthly decline as strong dollar, ample supply weigh
Oil prices eased on Friday, heading for a third consecutive monthly decline, as a stronger U.S. dollar and weak China data capped gains while rising supply from major producers globally offset the impact of Western sanctions on Russian exports.
Brent crude futures slipped 12 cents, or 0.18%, to $64.88 a barrel by 0744 GMT, while U.S. West Texas Intermediate crude was at $60.36 a barrel, down 21 cents, or 0.35%.
"A stronger USD weighed on investor appetite across the commodities complex," ANZ analysts said in a client note.
The greenback was boosted after U.S. Federal Reserve Chair Jerome Powell said on Wednesday an interest rate cut in December was not guaranteed.
Oil also slipped after an official survey showed China’s factory activity shrank for a seventh month in October.
Both Brent and WTI are set to fall about 3% in October as rising supply is set to exceed demand growth this year, with the Organization of the Petroleum Exporting Countries and major non-OPEC producers ramping up output to gain market share.
More supply will also cushion the impact of Western sanctions disrupting Russian oil exports to its top buyers China and India.
OPEC+ is leaning towards a modest output boost in December, people familiar with the talks said ahead of the group’s meeting on Sunday.
The eight OPEC+ members have boosted output targets by more than 2.7 million barrels per day - or about 2.5% of global supply - through a series of monthly increases.
Source: Reuters.com
