Crude oil futures traded within a narrow range on Monday as concerns about oversupply continue to affect investors' market sentiment, MarketWatch reported.
According to MarketWatch, on the New York Mercantile Exchange, light, sweet crude futures for delivery in December traded at $81.08 a barrel, up $0.01 in the Globex electronic session. December Brent crude on London's ICE Futures exchange fell $0.13 to $86.00 a barrel. Bloomberg added that West Texas Intermediate for December delivery declined as much as $1.57 to $79.44 a barrel in electronic trading, marking the lowest intraday level since June 29, 2012.
Global oversupply of crude oil has been largely attributed to OPEC's resistance to cut their production levels. Meanwhile, the U.S. has also kept up its pace of production, which as Bloomberg noted, is at its fastest pace in over three decades. Additionally, Russian crude oil output is nearly at its highest since the fall of the Soviet Union.
Bloomberg reported that investors are still speculating on possible supply cuts, particularly from OPEC, and this may be what is keeping prices stable today.
"We still can't rule out the possibility that OPEC may cut output" to reassert its market influence, said Hong Sung Ki, a senior analyst at Samsung Futures Inc. in Seoul in the news source.
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