Crude oil prices fell on Monday amid concerns about the outlook for energy demand from China following imposition of severe curbs in several places in the country due to a surge in Covid-19 cases.
A rise in oil output in the U.S., and a firm dollar weighed as well on crude oil prices.
West Texas Intermediate Crude oil futures for December ended down $1.37 or about 1.6% at $86.53 a barrel.
Brent crude futures were down $1.12 or 1.19% at $92.65 a barrel a little while ago.
Meanwhile, natural gas futures for December climbed $0.67 or about 11.8% to $6.355 per million Btus.
According to the data released by the government, oil output in the U.S. rose to nearly 12 million barrels per day in August, the highest since the pandemic.
Data out of China showed an unexpected drop in factory activity in the month of October in the world's second largest economy due to softening global demand, and strict Covid-19 restrictions.
Looming prospects of a recession in the euro zone, and rising interest rates also weighed on oil prices.
Meanwhile, in an annual outlook released by it today, the Organization of the Petroleum Exporting Countries (OPEC) has raised its forecasts for world oil demand in the medium-term and longer-term. The report says an investment of about $12.1 trillion is required to meet this demand despite energy transition.
