2023.12.0419:11:00UTC+00Oil Futures Settle At 3-week Low

Crude oil prices drifted lower on Monday, pushing the most active futures contract at near 3-week low, amid worries about the outlook for demand, and on skepticism about OPEC+ output cuts.

The dollar's rise weighed as well on oil prices.

West Texas Intermediate Crude oil futures for January ended lower by $1.03 or about 1.4% at $73.04 a barrel, the lowest settlement since November 16.

Brent crude futures were down $0.65 or about 0.86% at $78.20 a barrel a little while ago.

"There's clearly a lack of unity around the recent cuts so compliance is going to be a major issue," says Craig Erlam, Senior Market Analyst at OANDA, UK & CMEA, about the OPEC+ deal on output cuts.

"With markets seemingly anticipating more of an economic slowdown next year, the announcement simply doesn't go far enough. It's another large cut but how much will actually be delivered on? And are we at the limits of what the alliance is willing to achieve to balance the markets?" Erlam adds.