New York October 2 2023: Oil prices fell about 2% on Monday to a three-week low as a higher-priced Brent contract expired, the U.S. dollar strengthened and traders took profits, concerned about forecasts of rising crude supplies and pressure on demand from high interest rates.
On its first day as the front-month, Brent futures for December delivery fell to $90.78 a barrel by 11:24 a.m. EDT (1524 GMT), down $1.42, or 1.5%, from Friday's close and also down about 4% from where the November future closed on Friday when it was still the front-month. That was the Brent front-month's biggest daily percentage decline since late May.
U.S. West Texas Intermediate (WTI) crude fell $1.90, or 2.1%, to $88.89 per barrel.
Both benchmarks were headed for their third daily decline and their lowest settlements since mid-September.
Energy analysts cited profit taking after crude prices rose nearly 30% in the third quarter to 10-month highs. As of late last week, U.S. speculators had boosted their net long futures and options position on the New York Mercantile and Intercontinental Exchanges to the highest since May 2022, according to the U.S. Commodity Futures Trading Commission.