Despite moving up early on in the session amid speculation crude supply will fall once U.S. sanctions against Iran’s crude exports kick in from November, oil prices dropped down a bit on Monday, extending losses to a fourth straight session.
Traders may also have weighed the possibility of a drop in demand for crude due to hurricane Florence, which is reportedly heading toward the coast of South Carolina and North Carolina.
The early uptick in oil prices was also due to a report from Baker Hughes last Friday that U.S. oil rigs count dropped by two to 860.
Crude oil futures for October delivery ended down $0.20, or 0.3%, at $67.55 a barrel. On Friday, crude oil futures settled lower by 2 cents, at $67.75 a barrel.
Data released by the Energy Information Administration last Thursday showed crude stockpiles in the U.S. to have declined by 4.3 million barrels in the week ended August 31. That was a much larger than expected drop.
According to reports, Iran’s oil exports have been falling much faster than expected ahead of a November deadline for the implementation of new U.S. sanctions.
Meanwhile, U.S. Energy Secretary Rick Perry will reportedly meet his counterparts from Saudi Arabia and Russia starting today to discuss proposals for an oil output increase.