Oil Set for 10 Percent Fall in November as Supply Glut Persists

Oil prices on Monday were on course to end November some 10 percent lower as a global supply glut showed no sign of easing and weak stocks and a strong dollar further weighed on prices.

Brent crude , the global oil benchmark, was down 6 cents at $44.80 a barrel at 0915 GMT, on track for a 10-percent fall for the month.

U.S. crude futures were trading 7 cents lower at $41.64 per barrel and looked likely to reach the same monthly milestone.

A selloff in Chinese stocks dragged on Asian markets on Monday and European markets also opened lower, paving the way for a bearish start to the week.

The dollar edged to a fresh 8-1/2-month high against a basket of major currencies on Monday, making greenback-denominated contracts, such as oil, more expensive for holders of other currencies.

Reuters

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Craig Erlam

Craig Erlam

Senior Market Analyst - UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a Market Analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam