Oil futures rise 3 sessions in a row, US prices end this month’s high.

Oil futures rose for a third straight session on Monday, as U.S. prices hit their highest finish so far this month, as the U.S. dollar continued to retreat from multi-decade highs, as negotiations over the Iran nuclear deal hit another snag, and investors weighed supply developments. .

Price action
  • West Texas Intermediate crude for October delivery CL.1;
    + 1.23%

    + 1.23%

    + 1.23%
    It rose 99 cents, or 1.1 percent, to end at $87.78 a barrel on the New York Mercantile Exchange. That was the highest forward-month end since Aug. 31, according to Dow Jones Market Data.

  • November Brent crude BRN00,

    On ICE Futures Europe, the global benchmark was up $1.16, or about 1.3%, at $94 a barrel.

  • to Nymex, October gasoline RBV22;
    + 1.11%
    October heating oil HOV22 was up 0.5% at $2.4448 a gallon;
    + 0.53%
    It rose 0.7% to $3.6031 a gallon.

  • October Natural Gas NGV22;
    + 4.83%
    It gained 3.2% to $8.249 per million British thermal units.

Market drivers

ICE US Dollar Index DXY;
It fell 0.6%, extending the return from a 20-year high as the euro EURUSD;
+ 0.71%
went out. A stronger dollar was blamed in part for last week’s slide in crude since January, as fears over the outlook for demand weighed on the complex as investors focused on the Federal Reserve and other key central monetary policies. Banks.

A stronger dollar is seen as a weight on goods sold in the sector, making it more expensive for users of other currencies.

Although lockdowns in China and still high Russian oil exports may ease some of the tightness in global oil markets in the near term, we still expect oil supplies to tighten and prices to rise in the coming quarters, strategists at UBS wrote. In a research note on Monday.

Analysts at UBS said the sale of strategic oil reserves from OECD countries would remove more than a million barrels a day of supply from November, adding that rising oil demand and rising prices are fueling the need to generate electricity. natural gas and coal.

Meanwhile, analysts say developments around the Iran nuclear deal could also be helpful. France, Germany and Britain said on Saturday they had “serious doubts” about Tehran’s commitment to renewing the accord, citing reports that the UN nuclear watchdog’s stance on its efforts to trace uranium at three sites has been compromised. Iran called the joint statement “sad”.

Manish Raj, chief financial officer at Velandara Energy Partners, told MarketWatch on Monday that “deteriorating Iran nuclear talks” as well as a broad-based recovery in US capital markets and unyielding strength in US wage growth contributed to oil price gains.

“Physical market makers are breathing a sigh of relief to see the Iran nuclear deal pushed back,” he said. “The short-term price impact of the Iran deal is hard to dismiss as Iran stockpiled nearly 100 million barrels of oil to flood the market on the day sanctions were lifted.”

The Organization of the Petroleum Exporting Countries and their allies – a group known as OPEC+ – could be the reason for the volatile price action and the relationship with fundamentals, said Craig Erlam, a market analyst at Oanda, in a note.

OPEC+ agreed earlier this month to cut production by 100,000 barrels in October.

“The group sent a warning shot earlier this month and may be tempted to send another before the October meeting. The price recovery could be supported by this, alongside a broader improvement in risk appetite across markets and a weaker dollar,” Erlam said.

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