Photo caption: Oil
Oil prices dipped on Monday, heading lower as concerns around supply and the state of geopolitics continues to move markets.
By 9am in London, West Texas Intermediate had dipped to around $64.20, before bouncing back up to trade around 0.2% lower than the previous session. Brent crude also dipped around 0.2% to trade near the $66.33 mark.
The end of last week saw a rally for the viscose commodity, as US non-farm payroll data came in hotter than expected.
Investors are, this week, eyeing OPEC+ output decisions as well as ongoing trade discussions between the US and China.
OPEC+ production hikes are yet to translate into actual output gains, analysts at Morgan Stanley said.
“Notwithstanding the around one million-barrel-a-day increase in production quotas between March and June, an actual increase in production is hard to detect,” analysts including Martijn Rats said in a June 9 note, according to a Bloomberg report. “Notably, it does not appear that production in Saudi Arabia has ramped up significantly.”
US-China trade discussions will be on traders’ minds going into this week, with both economies having a large barring on oil consumption.
