Multinationals like Chevron Corporation and BP Plc resumed strong production as Tropical Storm Karen was reduced to a depression and pushed beyond facilities in the Gulf of Mexico.
"When we had fear about a hurricane and missing supply in the Gulf of Mexico, we had a reaction upwards, and now as this fear wanes the price moves down," analyst Frank Klumpp with Landesbank Baden-Wuerttemberg in Stuttgart, Germany told the publication on Monday. "The market will continue to be supply-driven, and the larger moves in price will come from supply factors."
At 9:51 a.m. on Monday, WTI crude oil futures dropped 1.65 percent, a $1.71 loss to $102.13 per barrel. At 9:50 a.m., Brent crude oil futures slid 0.98 percent, a $1.07 loss to $108.39 per barrel.
Reuters reports the lack of progress on discussions in the U.S. to cease the partial government shutdown also tugged down the energy commodity. Concerns are spreading about upcoming negotiations about the debt ceiling in the U.S., the news source reports.
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