Higher supplies and lower than expected robust demand lead oil prices to slide on Monday.
West Texas Crude oil (WTI) slid to $80.30 by 0.61% and Brent crude oil fell to $81.66 by 0.62%.
Sentiment for oil dropped on speculation that the White House might release oil from strategic reserves to ease tightness in the oil market. Officials at the White House has been debating whether to tackle “transitory inflation” by releasing oil from strategic reserves.
Oil and gas rig count rose by six to 556 in the week to November 12 marking the highest level since April 2020, according to energy services firm Baker Hughes Co. as reported by Reuters.
Organization of the Petroleum Exporting Countries (OPEC) amid uneven post pandemic global recovery last week slashed oil demand forecast for the fourth quarter by 330,000 barrels per day (bpd) moving away from last month’s forecast.