Breaking News
Get 40% Off 0
👀 Reveal Warren Buffett's stock picks that are beating the S&P 500 by +174.3% Get 40% Off

Oil prices settle lower on dollar strength, ongoing supply surplus concerns

Published Dec 04, 2023 08:44PM ET Updated Dec 05, 2023 03:59PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.
 
LCO
+1.89%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
CL
+1.98%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
DXY
-0.26%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

Investing.com -- Oil prices settled lower Tuesday, as a stronger dollar and fears about supply outstripping demand remain front and center, offsetting a potential supply risk from ongoing tensions in the Middle East. 

By 14:30 ET (19.30 GMT), the U.S. crude futures settled 1% lower at $72.32 a barrel and the Brent contract fell 1.1% to $77.20 a barrel.

Fears of a potential escalation in the Israel-Hamas conflict came back into play after the U.S. held Iran responsible for an attack on U.S. vessels in the Red Sea by Houthi forces. But traders remained wary of pricing too high a risk premium into oil over the conflict, given that it so far had minimal impact on Middle Eastern oil supplies. 

Stronger dollar, global economic concerns weigh

The dollar rose, weighing on oil prices, despite falling Treasury yields fell amid data pointing to weakness in the labor market as labor demand fell to a two-year low.   

The signs of a weakening labor market in the U.S come ahead of nonfarm payrolls data, due this Friday.

Adding to global growth concerns, ratings agency Moody's (NYSE:MCO) cut its outlook on China's government credit ratings to negative from stable earlier Tuesday, in the latest sign of mounting global concern over a deepening property crisis in the world's second-largest economy.

Skepticism over OPEC’s voluntary cuts continue

Sentiment on oil prices continued to be soured concerns that the Organization of the Petroleum Exporting Countries and allies, including Russia, a group known as OPEC+, agreements on Nov. 30 to take 2.2 million barrels a day offline early next year may not be enough to curb a potential supply surplus.  

Russia indicated the cuts agreed by the OPEC+ group will take time to kick in, with the market wary that Moscow may try to talk up the need for cuts while producing as much as possible to fund the ongoing war in Ukraine.

(Peter Nurse and Ambar Warrick contributed to this report.)

Oil prices settle lower on dollar strength, ongoing supply surplus concerns
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (2)
EL LA
EL LA Dec 05, 2023 10:09AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Obviously, OPEC+ will need to cut earlier in December and perhaps even more than expected, so as not to disappoint the market. Bundle up this winter! Storms coming!
William Amponsah
William Amponsah Dec 05, 2023 9:42AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
THANKS VERY MUCH FOR THE UPDATE, GREAT INFORMATION ALWAYS
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email