Brent slips below $74, WTI crude falls 2%

Oil rigs

Oil prices declined on Monday as the US dollar rose to the highest level in a month, and as efforts continue to restore production in US Gulf of Mexico in the wake of two hurricanes.

The international benchmark Brent crude was trading down 1.8% at $73.96 per barrel, at 12.50 pm Makkah time.

WTI crude fell 2.1% to $70.44 per barrel.

“US production in the Gulf of Mexico, which had been shut down as a result of the hurricane, is gradually returning to the market,” Reuters reported, citing Carsten Fritsch, an analyst at Commerzbank.

Additionally, a rise in the US rig count to its highest since April 2020 also kept a lid on prices.

Meanwhile, Vandana Hari, founder of energy consultant Vanda Insights, said the discussions that the US Federal Reserve will begin reducing asset purchases are back and weighing on oil, Bloomberg reported.

Last week’s supportive factors, including big stockpile draws due to a slow recovery from Hurricane Ida, have waned, she added.