ALBAWABA – Oil prices decline on Monday as the world looks to the United States (US) Federal Reserve (Fed) two-day policy meeting Tuesday and Wednesday.
Brent crude futures fell $0.7, or 0.94 percent, to $74.09 a barrel, while West Texas Intermediate (WTI) crude traded at $69.53, down 0.91 percent.
Both benchmarks posted their second straight weekly declines last week, in light of worse-than-expected China economic data, Reuters reported.
Concerns about demand growth in the world's largest crude importer, China, offset a boost in prices from Saudi Arabia pledging to cut production by one million barrels per day (bpd) in July.
Meanwhile, the Fed's rate hikes have strengthened the greenback, making dollar-denominated commodities more expensive for holders of other currencies and weighing on prices.
Russian oil exports to China and India have grown despite the implementation of the European Union's embargo and the Group of Seven's price cap mechanism, as of early December, according to Reuters.
Goldman Sachs reportedly cut its oil price forecasts on higher-than-expected supplies from Russia and Iran and raised 2024 supply forecasts for the two producers, and Venezuela, by a total 800,000 bpd.
The bank's December crude price forecast now stands at $86 a barrel for Brent, down from $95, and at $81 a barrel for WTI, down from $89, as per Reuters’ report Monday.
