Oil prices stabilized on Monday despite OPEC+ cuts and concerns about excess supply and a decline in fuel demand next year.
Brent crude futures dropped to $75.78 per barrel by 1427 GMT, while US West Texas Intermediate crude futures fell to $71.16.
The two prices of crude oil rose over two percent on Friday but fell for seven consecutive weeks, marking the most extended weekly decline since 2018 due to continued concerns about the excess oil supply.
OPEC and its allies, commonly known as OPEC+, agreed to reduce production by 2.2 million barrels per day in the year’s first quarter. However, investors are still determining if this will decrease supplies, as production growth in some countries is expected to continue, leaving OPEC members with an oversupply of oil.
Next year, non-OPEC countries are expected to have a surplus due to production growth.
Investors are keeping a close eye on the meetings of five central banks, including the US Central Bank, this week. They are hoping to gather indicators related to interest rates and US inflation data to understand their impact on the global economy and the demand for oil.
