Oil falls on US crude oil recovery

Highlights

  • Crude oil dips on Monday.
  • US operations resumed production.
  • Oil recorded a 3% weekly gain in the last week.

Crude oil prices inch lower on Monday after registering a 3% weekly gain in the last week. The prices tumbled as oil and gas firms resumed operations in the US Gulf of Mexico followed by two consecutive hurricanes in the region. November delivery Brent Crude oil futures last traded at US$75.04 per barrel down 0.36%, whereas November delivery WTI crude oil futures traded 0.47% down at US$71.48 per barrel as of 20 September 2021 at 10:27 AM AEST.

The prices gained momentum in the last week due to the supply disruptions and rapid drawdown in the US inventories. With US operations resuming production, the supply streamlined, cooling oil prices. However, the drop in prices is partially offset by the rise of the US dollar to multi-week highs on Friday, making crude oil expensive for other currency holders.

Bottom Line

Crude oil prices edge lower on Monday as the operations in the US resumed production, reducing the supply concerns followed by Hurricane Ida and Nicholas.

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