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Crude oil futures tumble amid receding global supply concerns

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Investing.com -

Investing.com - Crude oil futures fell sharply on Monday, as global supplies were seen as ample despite ongoing violence in Ukraine, Libya and Iraq.

On the ICE Futures Exchange in London, Brent oil for October delivery fell 1.6%, or $1.66, to trade at $101.91 a barrel during U.S. morning hours.

London-traded Brent prices hit a session low of $101.84 earlier, the lowest since July 1, 2013.

Elsewhere, on the New York Mercantile Exchange, crude oil for delivery in October declined 1.13%, or $1.07, to trade at $94.24 a barrel.

Concerns over the conflict between Russia and Ukraine escalated on Friday after Ukraine's military attacked and destroyed a number of armored vehicles that entered the country from Russia.

Tensions eased amid hopes that a meeting due to take place between Russian and Ukraine's foreign ministers later in the day would result in a ceasefire.

Oil traders have monitored tensions between Ukraine and Russia for months, amid concerns that Western sanctions against Russia could halt the country's oil exports.

Russia is one of the world's top producers and exporters of oil and gas.

Meanwhile, Libya's oil production increased to 535,000 barrels a day on Sunday from 400,000 last week due to higher output at the southwestern El Sharara, El Feel fields, a spokesman for the National Oil Corporation said.

Elsewhere, the U.S. conducted a second day of air strikes against militants from the Islamic State in northern Iraq, as Kurdish fighters pushed to retake Iraq's largest dam on Sunday.

Market analysts said U.S. airstrikes might lower the risk of oil supply disruptions from the country.

Iraq produced approximately 3.5 million barrels a day of oil last month, making it OPEC's second-biggest oil producer behind Saudi Arabia.

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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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