Oil prices dropped on Monday as China’s release of gasoline and diesel reserves eased concerns over tight global supply, while investors cashed in ahead of a Nov. 4 meeting of major crude producers that could increase future production targets.
Brent crude futures dropped 29 cents, or 0.4%, to $83.43 a barrel by 0351 GMT, after gaining 6 cents on Friday. U.S. West Texas Intermediate (WTI) crude futures slid 40 cents, or 0.5%, to $83.17, having risen 76 cents on Friday.
The drops came after China said in a rare official statement that it had released reserves of the two fuels to increase market supply and support price stability in some regions.
“Behind the selling was China’s release of fuels reserves, which reflected Beijing’s intention to stabilise oil prices, just like coal prices,” said Chiyoki Chen, chief analyst at Sunward Trading. “Also, investors took profits ahead of an OPEC+ meeting,” Chen said.
All eyes are on the Nov. 4 meeting of the Organization of the Petroleum Exporting Countries (OPEC), Russia and their allies, together called OPEC+, with analysts expecting them to stick to a plan to add 400,000 barrels per day of supply in December. [REUTERS]
