Oil fell more than 2 percent to its lowest in three months on Monday, as the prospect of another year of oversupply and weak prices overshadowed chances OPEC will reach a deal to cut output.
Donald Trump’s surprise win in last week’s U.S. presidential election boosted the dollar and stocks but undermined oil. Crude has also fallen because of waning expectations that the world’s largest exporters will agree to reduce production this month.
Brent LCOc1 fell $1.11, or 2.5 percent, to $43.64 a barrel by 11:32 a.m. EST. U.S. crude CLc1 fell $1.12, or 2.6 percent, to $42.29 per barrel. Both contracts were down for a third day in a row to their lowest levels since Aug. 11.
The Organization of the Petroleum Exporting Countries plans to cut or freeze output, but some analysts doubt the group’s ability to reach an agreement at its meeting on Nov. 30.
“Complex seeing further downside pressures amidst increasingly bearish balances, U.S. dollar strength and lack of OPEC confidence,” Jim Ritterbusch, president of Chicago-based energy advisory Ritterbusch & Associates, said in a note.
OPEC said on Friday its output hit a record 33.64 million barrels per day in October, and forecast an even larger global surplus in 2017 than the International Energy Agency on Thursday. [IEA/M]
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