Crude oil prices fell as a stronger U.S. dollar and weak markets pressured commodities. Investors shifted toward safe-haven assets while reassessing the global supply outlook and OPEC+ production plans.
Brent crude oil prices futures fell 6 cents, or 0.1%, to $64.38 a barrel by 0408 GMT. U.S. West Texas Intermediate (WTI) crude slipped 10 cents, or 0.17%, to $60.46. The minor dip followed a two-week low in the prior session, extending pressure on crude oil prices.
ANZ analysts said the “risk-off” mood led investors to exit energy markets. Asian stocks tumbled as market volatility hit its highest level since April. A tech-led selloff on Wall Street fueled fears of inflated valuations.
The U.S. dollar index hovered near a three-month high. It strengthened against major currencies, including the euro, sterling, and yen. Divisions among Federal Reserve officials reduced expectations for an interest rate cut at the December policy meeting.
A stronger dollar typically weighs on crude oil prices by making oil more expensive for non-dollar buyers. Lower interest rates, in contrast, often boost energy demand through faster economic growth.
“Crude oil is trading lower as risk sentiment turned sharply negative, lifting the safe-haven U.S. dollar,” said IG analyst Tony Sycamore. “Both factors weighed on crude oil prices.”
The American Petroleum Institute (API) also reported a rise in U.S. crude inventories for the week ending October 31. Growing stockpiles signal weaker demand and can slow any recovery in crude oil prices.
On the supply side, OPEC+ agreed on Sunday to raise production by 137,000 barrels per day in December. The group will pause further increases during the first quarter of 2026.
LSEG analysts said the pause is unlikely to offer “meaningful support” to late-2025 prices. In October, OPEC added only 30,000 barrels per day, far less than September’s 330,000 barrels, as Nigeria, Libya, and Venezuela saw declines.
With strong dollar momentum, higher inventories, and uncertain demand, traders expect crude oil prices to stay under pressure soon.