U.S. West Texas Intermediate and international-benchmark Brent crude oil futures are trading lower shortly before the regular session opening. After early session strength, both contracts versed course and turned lower due to pressure on the global stock markets.
At 1118 GMT, April WTI crude oil futures are trading $61.82, down $0.55 or -0.88%. April Brent crude oil is at 464.90, down $0.80 or -1.22%.
In other news, WTI prices were supported early in the session in reaction to reduced flows from Canada’s Keystone pipeline, which has been operating below capacity since late last year due to a leak, cutting Canadian supplies into the United States.
Meanwhile, international favorite Brent crude eased on the back of weakness in Asian stocks and a stronger U.S. Dollar.
On Monday, OPEC Secretary-General Mohammad Barkindo said the OPEC-led group set up to curb production, registered 133 percent compliance with agreed output reduction targets in January. Last year, compliance stood at 107 percent.
Barkindo added that global oil demand for 2018 is estimated to grow 1.6 million barrels per day due to an “encouraging environment”.
Forecasts
The early price action indicates that WTI and Brent crude oil are likely to be under pressure today, largely influenced by the stronger U.S. Dollar and falling demand for higher-yielding assets.
The stronger dollar is expected to weigh on foreign demand over the short-term. Weaker global equity markets may encourage crude oil investors to book profits after the weak-long rally.
Traders will also continue to monitor the OPEC-led deal to cut production. While Saudi Arabia is showing strong support for the production cuts, non-OPEC producer Russia has shown signs it may at some stage gradually start to increase output again. If this were to occur, it would have a negative influence on prices.