Crude oil storage tanks are seen in an aerial photograph at the Cushing oil hub in Cushing, Oklahoma, U.S., April 21, 2020.
- Oil prices remain under pressure because OPEC+ plans to begin increasing production in December and as demand in China, the world's largest crude importer, remains soft.
- Prices are even finding little support from red-hot tensions in the Middle East.
U.S. crude oil prices are on pace for a third monthly loss in a row in September as rising supplies from OPEC+ and weak demand in China haunt the market.
The U.S. benchmark has declined more than 7% for the month, while global benchmark Brent has fallen about 9%.
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"Oil markets are experiencing a panic attack," Amarpreet Singh, energy analyst at Barclays, told clients in a Friday note. "Balances are set to loosen next year, but concerns are likely overdone."
Barclays expects Brent to average $85 in 2025.
Here are Monday's energy prices:
- West Texas Intermediate November contract: $68.23 per barrel, up 5 cents, or 0.07%. Year to date, U.S. crude oil has fallen nearly 5%.
- Brent November contract: $71.69 per barrel, down 29 cents, or 0.4%. Year to date, the global benchmark has declined nearly 7%.
- RBOB Gasoline October contract: $1.954 per gallon, up 0.05%. Year to date, gasoline has pulled back about 7%.
- Natural Gas November contract: $2.896 per thousand cubic feet, down 0.21%. Year to date, gas has gained about 16%.
Oil prices remain under pressure in part because OPEC+ plans to begin increasing production in December, and as demand in China, the world's largest crude importer, remains soft.
Money Report
Prices are finding little support from red-hot tensions in the Middle East even after Israel killed Hezbollah leader Hassan Nasrallah in an airstrike in Beirut on Friday. The Netanyahu government is pummeling the Iran-backed militia group, with concerns growing that Israel might launch a ground operation in Lebanon.
"We believe that this price action reflects that the geopolitical risk premium remains limited [amid] market expectations of potentially higher oil supply" from Libya and Saudi Arabia, Daan Struyven, head oil analyst at Goldman Sachs, told clients in a Sunday note.
