Oil heads for third monthly decline as dollar, OPEC+ supply weigh
Oil prices were flat on Friday, but were heading for a third consecutive monthly decline, as a stronger U.S. dollar, weak China data and rising supply from major global producers weighed.
Retracing some earlier losses, Brent crude futures were up 29 cents, or 0.5%, at $65.29 a barrel by 1303 GMT, while U.S. West Texas Intermediate crude was at $61.10 a barrel, up 53 cents, or 0.9%.
The U.S. dollar was near three-month highs against its major peers, making purchases of dollar-denominated commodities such as oil more expensive.
Meanwhile, sources told Reuters that Saudi Arabia, the world’s biggest oil exporter, may reduce its December crude price for Asian buyers to multi-month lows, sources said, sounding a bearish note.
Oil also slipped after an official survey showed China’s factory activity shrank for a seventh month in October.
Brent and WTI are set to fall 2.6% and 2%, respectively, in October with the Organization of the Petroleum Exporting Countries and major non-OPEC producers ramping up output.
More supply will also cushion the impact of Western sanctions disrupting Russian oil exports to its top buyers China and India.
A Reuters survey forecast Brent will average $67.99 per barrel in 2025, about 38 cents above last month’s estimate. WTI is expected to average $64.83, slightly above September’s estimate of $64.39.
OPEC+ is leaning towards a modest output boost in December, people familiar with the talks said ahead of the group’s meeting on Sunday.
Source: Reuters
