Oil Futures Recover After Early Weakness, Settle Marginally Higher

Crude oil futures settled marginally Higher on Monday after plunging earlier in the session amid expectations of higher supplies and weakening demand.

The dollar’s climb to a 16-month high also weighed on oil prices early on in the session.

U.S. President Joe Biden has called on the OPEC+ alliance to turn on the taps and bring down crude prices.

However, Saudi Arabia and the UAE signaled that they will continue raising oil output cautiously and won’t bow to U.S. pressure to pump faster.

Traders also reacted to UAE Energy Minister Suhail al-Mazrouei’s comments that all indications point to an oil supply surplus in the first quarter of 2022. He said he expects OPEC+ to stick to current production policy when it next meets in early December.

In a letter last week, eleven Senate Democrats urged Biden to tap the Strategic Petroleum Reserve and ban crude exports from the United States in order to cool prices.

West Texas Intermediate Crude oil futures for December ended higher by $0.09 or about 0.1% at $80.88 a barrel.

Brent crude futures were down marginally at $82.10 a barrel a little while ago. Earlier, the contract dropped to a low of $80.67 a barrel.

Uncertainty about the outlook for energy demand due to a n increase new coronavirus cases weighed on oil prices.

Germany’s coronavirus infection rate has risen to its highest level since the start of the pandemic, public health figures showed.

In Austria, a nationwide lockdown has been imposed, effective today, for all all those unvaccinated against Covid-19, following a jump in infection rates.

Meanwhile, in Ireland, people have been urged to work from home again.

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