Crude oil prices drop in early trade as caution about a data-heavy week prevails

30 Oct 2023 , 09:56 AM

Oil prices dipped $1 a barrel on Monday as investors chose caution ahead of the Fed policy meeting and China’s manufacturing data later this week, offsetting support from geopolitical tensions in the Middle East.

Brent crude futures had fallen 98 cents, or 1.1%, to $89.50 a barrel, while U.S. West Texas Intermediate crude had dropped $1, or 1.2%, to $84.54 a barrel.

After Israel increased its ground incursions into Gaza on Friday, raising concerns that the battle could spread to the region that produces one-third of the world’s oil, both Brent and WTI closed the day 3% higher.

Due to erratic prices and investor jitters brought on by Middle East developments, Brent and WTI had their first weekly declines in three weeks last week.

This week, China will release its manufacturing and services PMIs for October. Investors will be looking for additional indications of a stabilising economy and rising gasoline consumption at the world’s largest crude importer and second-largest oil consumer, following Beijing’s recent round of supportive policy initiatives.

For feedback and suggestions, write to us at [e-mail]