2023.09.2519:25:00UTC+00Oil Futures Settle Lower On Demand Worries

Crude oil futures settled lower on Monday, as concerns about energy demand and interest rates offset optimism about a tighter supply outlook.

A stronger dollar weighed as well on oil prices. The dollar rose to new multi-month high today, riding on hawkish comments on interest rates from the Federal Reserve and other central banks.

West Texas Intermediate Crude oil futures for November ended down $0.35 or about 0.4% at $89.68 a barrel.

Brent crude futures ended with a small gain of $0.02 at $93.29 a barrel.

Reports that Russia has tweaked its export ban hurt oil prices. Russia has reportedly lifted the restrictions for fuel used as bunkering for some vessels and diesel with high sulfur content, citing a government document.

However, the report says the export ban on all types of gasoline and high-quality diesel remains in place.

"Crude prices aren't doing much of anything, slightly down as global growth prospects are feeling the pinch from the resumption of the global bond market selloff," says Edward Moya, Senior Market Analyst at OANDA. "King dollar will remain a headwind for oil, but that might not last that much longer. Hedge fund bets on oil are getting overcrowded as the latest data shows bullish bets are at the highest levels since February 2022," he adds.