2022.12.0519:51:00UTC+00Oil Futures Settle Sharply Lower

Oil prices fell on Monday as strong U.S. service data raised the prospects for more aggressive moves by the Federal Reserve.

Oil prices rose sharply earlier in the session, riding on the decision of OPEC+ to stick their October plan to cut output by 2 million barrels per day from November through 2023.

West Texas Intermediate Crude futures for January ended lower by $3.05 or about 3.8% at $76.93 a barrel, after having climbed to $82.72 a barrel earlier in the session.

Brent crude futures were down $2.65 or 3.1% at $82.92 a barrel a little while ago.

A report from the Institute for Supply Management showed U.S. service sector activity unexpectedly grew at an accelerated rate in the in the month of November.

The ISM said its services PMI climbed to 56.5 in November from 54.4 in October, with a reading above 50 indicating growth in the sector. The increase surprised economists, who had expected the index to dip to 53.1.

A separate report released by the Commerce Department showed new orders for U.S. manufactured goods jumped by more than expected in the month of October.