Rigging equipment is pictured in a field outside of Sweetwater, Texas June 4, 2015. Reuters/Cooper Neill
Crude oil fell on Monday, reversing an early rally, after a survey estimated higher OPEC output in November and a stronger dollar weighed on demand for commodities priced in the currency.U.S. government data showing no meaningful decline in shale oil output in September despite a steady drop in rig counts was another negative factor.
A tumble in U.S. gasoline and ultralow sulfur diesel futures as their front-month contracts headed for expiry added to the market’s bearish sentiment.
Benchmark Brent crude futures settled down 25 cents, or 0.6 percent, at $44.61 a barrel, after rising nearly $1 earlier.
U.S. crude’s West Texas Intermediate (WTI) futures finished the session down 6 cents at $41.65, versus a session high at $42.61.
Both Brent and WTI settled down about 10 percent for November as the global crude glut showed little sign of yielding.
“We feel the only real hope for oil bulls now would be a year-end destocking of crude that will create draws” in U.S. crude, said Tariq Zahir of New York’s Tyche Capital Advisors, which holds bearish positions on WTI.
“Even if we get a bounce in any fashion, that will be prime opportunity for bears like me to try and ride the elevator down to the $30 handle.”
Crude futures rose more than 1 percent earlier on Monday as some traders and investors hedged for the possibility of production cuts and other…