FX.co ★ Crude Oil Drops to Monthly Lows

WTI crude oil futures experienced a decline of over 2%, dropping to below $59 per barrel on Monday. This decrease brought the price close to its monthly lows, influenced by a stronger dollar and new indications of weakened fuel demand. The dip in equity markets, combined with a subdued economic outlook, diminished forecasts for transport and industrial usage, thereby affecting a major pillar of oil demand. Meanwhile, US crude oil stockpiles increased by roughly 0.57 million barrels according to the latest EIA report, contributing to an oversupplied market at a time when demand signals are tepid. On the geopolitical front, any support was minimal as Ukraine confirmed the absence of any agreements with Moscow, maintaining Russian sanctions without presenting fresh catalysts for supply disruptions. Market participants also observed that recent disturbances at Russian and Ukrainian energy facilities had not intensified recently. However, concerns about potential restrictions on Russian exports continued to offer some support to prices.