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Crude oil futures struggle amid worries over ample global supplies

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Investing.com -

Investing.com - Crude oil futures edged higher during European morning trade on Monday, but gains were limit amid speculation rising global supplies will be more than enough to meet slowing demand.

On the New York Mercantile Exchange, crude oil for delivery in November traded at $89.84 a barrel during European morning hours, up 10 cents, or 0.11%, from a closing price of $89.74 on Friday.

Futures were likely to find support at $88.18 a barrel, the low from October 2, and resistance at $91.79 a barrel, the high from October 3.

Elsewhere, on the ICE Futures Exchange in London, Brent oil for November delivery shed 2 cents, or 0.02%, to hit $92.29 a barrel. Futures fell to $91.55 on Friday, the lowest since June 2012.

Meanwhile the spread between the Brent and the WTI crude contracts narrowed to $2.45 from $2.57 in the previous session.

London-traded Brent prices have fallen more than 20% since June, when it climbed near $116 following violence in the Middle East and North Africa.

Global supplies have far outpaced demand in recent months, sparking speculation among traders about whether the Organization of the Petroleum Exporting Countries would lower production to keep prices high.

A report last week showed OPEC oil output hit a two-year high of 31 million barrels per day in September.

Some market analysts believe that only a cut in output by the oil cartel will halt the decline in prices.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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