Crude oil futures were trading at about $85 per barrel on Monday, after falling by almost 6% over the previous week. November crude oil futures on WTI were at $78.30, down 0.56 percent, while November crude oil futures on Brent were at $85.61, down 0.63 percent, both as of 10:02 a.m. On the Multi Commodity Exchange (MCX), the price of October crude oil futures was trading at $6,428 in early trade, up 0.03 percent from the previous close of $6,426.
The price of November futures was trading at $6,428 as opposed to the previous close of $6,429, down 0.02 percent. Crude oil prices were impacted by many rate increases to control inflation over the past week in various economies. The market was concerned that these rate increases would cause the economy to slow down, which would reduce demand for crude oil.
The Organization of Petroleum Exporting Countries (OPEC) and its partners, known as OPEC+, are likely to take action to stop the price decline at their upcoming meeting, which is slated for early next month. This might entail further lowering the output of crude oil. OPEC+, which met at the beginning of September, decided to reduce production output starting in October by 100,000 barrels per day, or around 0.1% of the world’s demand, in an effort to manage prices.
Market analysts believe that Russia’s move to increase force levels in its conflict with Ukraine will help stop further declines in crude oil prices. Additionally, the European Union’s sanctions on Russia will start to take effect in December. This element would also aid in preventing future price declines.
