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Oil lower after data shows it was another weak month in November

WTI oil reversed on Wednesday, losing 2% to US$40.99 while Brent crude spilled 2.1% to US$43.48.

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Brent crude averaged US$46 per barrel in November

It was another difficult month for oil prices last month despite heightened geopolitical risk.

Upstream energy markets had another weak month in November, with both Brent and US crude showing month-on-month falls despite of rising tension in the Middle East and the arrival of winter.

Brent crude averaged US$46 per barrel in November, while West Texas Intermediate (WTI) averaged US$42.76, down 42% year on year and 7% month on month.

UBS said: “Currently the market is focusing on any prospect of a production cut and prices have been sensitive to any hint of this.

This week will be on the OPEC meeting on Friday and UBS said: “We expect no fundamental shift in strategy from OPEC.”

After managing to extend to weekly highs of US$42.58 on Monday, WTI oil reversed the rally on Wednesday, losing 2% to US$40.99 while Brent crude spilled 2.1% to US$43.48.

The strengthening Dollar may also have attributed to the factors which have pressured prices as commodities are priced in the currency.

Lukman Otunuga, a research analyst at FXTM, said: “Oil remains fundamentally bearish and with the reoccurring theme of an excessive oversupply in the markets complimented with the sluggish global demand haunting investor attraction, there may be a potential for a further fall.”

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