Oil futures lost more than $2 a barrel in early trading Monday as U.S. West Texas Intermediate crude slumped to its lowest level in 11 months, at a time when protests in China - the largest oil importer - over tough COVID-19 restrictions have fueled fears about demand.
Brent crude oil fell $2.16, or 2.6%, to trade at $81.47 per barrel at 2:30, after falling to $81.16 earlier in the session, at its lowest level since 11 January, and is currently trading at $81.4 per barrel.
U.S. West Texas Intermediate crude fell $2.08, or 2.7%, to $74.20 a barrel. U.S. crude fell to $73.82 earlier, its lowest since December 27, 2021. It is currently trading at $73.84 per barrel.
U.S. West Texas Intermediate crude fell $2.08, or 2.7%, to $74.20 a barrel. U.S. crude fell to $73.82 earlier, its lowest since December 27, 2021. It is currently trading at $73.84 per barrel.
Both benchmarks, which reached their lowest levels in 10 months last week, recorded 3 consecutive weekly declines. Brent ended the last week down 4.6%, while WTI fell 4.7%.
The Director General of Research at Nissan Securities Company Hiroyuki Kikukawa predicted that WTI's trading range would fall to between $70 and $75.
The market could remain volatile depending on the outcome of the OPEC Plus meeting and the Russian oil price ceiling.
China, the world's largest oil importer, has committed to President Xi Jinping's zero-COVID policy even as many countries have lifted most restrictions.
Roofing Russian Oil Price:
Diplomats from the Group of Seven and the European Union discussed a Russian oil price cap of $65 to $70 per barrel aimed at limiting revenue to finance Moscow's military offensive in Ukraine without disrupting global oil markets.
However, EU diplomats said that the meeting of representatives of the Union's Governments, scheduled for the evening of 25 November to discuss the issue, had been cancelled.
The Russian oil price cap is due to take effect next December 5 when the European Union's ban on Russian crude begins.
Investors are also focusing on the upcoming OPEC Plus meeting, which brings together the Organization of Petroleum Exporting Countries and its allies, on December 4.
OPEC Plus agreed in October to reduce its target level of production by 2 million barrels per day (bpd) until 2023.
Gold Decline:
Gold prices fell on Monday after the dollar rose due to safe haven demand, triggered by protests in several Chinese cities over strict coronavirus restrictions.
The price of gold in instant transactions fell 0.4% to $1,749 per ounce at 3:14 GMT. US gold futures fell 0.2% to $1,749.90.
The dollar index rose 0.4%, making bullion priced in US dollars more expensive for buyers holding other currencies.
"Gold prices are closely tracking US dollar movements, and the growing uncertainty due to the growing turmoil in China appears to be shoring up the dollar this morning," IG market analyst YP DSRONG said.
For other precious metals: Silver fell 1.8% to $21.21 per ounce , Platinum declined 0.3% to $978 and Palladium fell 0.3% to $1846.94.
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