Crude Oil Eases As Traders Weigh Demand Outlook

brent oil prices

Brent Crude Oil :  Eased toward $97 per barrel on Monday as traders weighed a weakening demand outlook stemming from even tighter monetary conditions against a large output cut by OPEC+ that threatens to squeeze supply further ahead of winter.

A still-tight US labor market and a firm hawkish stance from US policymakers escalated fears that the Federal Reserve will raise borrowing costs to restrictive levels, fueling concerns about the global economy and overall demand.

Meanwhile, the international oil benchmark rallied about 15% last week after OPEC+ agreed to cut production by 2 million barrels per day or about 2% of global supply from November, which would be the biggest output cut since the start of the pandemic.

Adding to supply concerns, Russia reiterated its warning last week that it won’t sell oil to countries that support the US-led plan to impose a price cap on Russian oil