Oil prices were lower on Monday morning after enjoying significant gains in Q3 after data indicated that OPEC’s September production increased more than expected. According to a survey by Reuters, OPEC’s production rose by 50,000 barrels per day in September. U.S. WTI futures were down 0.19 percent to $51.57 per barrel, while Brent crude futures were down 0.32 percent to $56.63 per barrel as of 2:06 p.m. HK/SIN.
Brent had closed the quarter on Friday up 13 cents per barrel, a gain of approximately 20 percent for the quarter, the biggest gain in five quarters. It was the biggest third-quarter increase since 2004. Last week Brent prices saw their fifth consecutive weekly gain, the first positive run of that length in 2017. Prices were helped significantly by the slowdown in refining that followed Hurricane Harvey last month, but analysts are quick to warn that the return to normal activity could reverse the positive trend in the near future.
U.S. energy companies added oil rigs for the first time in seven weeks. The six additional oil rigs brought the number to 750.
Currency Movements
The dollar saw a strong start to the quarter this morning as the euro faced pressure resulting from the independence vote in Spain’s Catalonia in which it appeared likely that the territory would secede from Spain. The euro was down 0.38 percent against the dollar, trading at $1.1767. The yen also eased against the greenback, trading at 112.85.
Liquidity was relatively thin on Monday morning due to holidays in China, Hong Kong, South Korea and India. Sydney’s exchange was also closed for a legal holiday on Monday though the markets in Melbourne remained open.