Crude oil futures settled lower Monday, falling after last week’s strong climb lifted crude prices to a one-month high, Kallanish Energy reports.
Monday’s price decline put an end to a four-session streak of gains, which were fed by a surprise weekly drop in U.S. crude oil inventories.
West Texas Intermediate crude for December delivery lost 85 cents, or 1.5%, to settle at $55.81 a barrel on the New York Mercantile Exchange. December Brent crude, the global benchmark, fell 45 cents, or 0.7%, to $61.57/Bbl on ICE Futures Europe.
WTI last Friday finished at the highest level for a front-month contract in a month, climbing 5.2% for the week, according to Dow Jones Market Data.
Brent crude rose 4.4% for the week, closing Friday at its highest mark since Sept. 26. Gains last week were driven in large part by supply concerns, particularly a drop in U.S. oil product inventories.
Growth in U.S. oil production will be a large driver in determining the scope of production cuts by Opec+, the group which includes most Opec members along with 10 non-Opec producers led by Russia.
The current Opec+ production cutback of 1.2 million barrels per day is due to expire April 1.
This post appeared first on Kallanish Energy News.