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Oil settles lower after OPEC plans to boost output
Oil prices settled lower on Monday, October 27, as news of OPEC plans to increase oil production overshadowed hopes of a framework for a US-China trade deal and the US imposing sanctions on two Russian oil companies.
Brent crude futures fell 32 cents, or 0.49%, to settle at $65.62 a barrel.
West Texas Intermediate (WTI) crude futures fell 19 cents, or 0.31%, to settle at $61.31 a barrel.
Both contracts were down about 1% in early trading.
Four sources familiar with the talks said that eight OPEC+ members are leaning toward slightly increasing their December oil production when they meet on Sunday as Saudi Arabia seeks to regain market share.
Haitong Securities said in a note that market expectations have improved following new sanctions on Russia and easing tensions between the US and China, easing concerns about a crude supply glut that had driven prices lower earlier in October.
US Treasury Secretary Scott Besant said on Sunday that senior Chinese and US economic officials had reached a "very substantial framework" for a trade agreement in Kuala Lumpur, allowing President Donald Trump and his Chinese counterpart, Xi Jinping, to discuss trade cooperation later this week.
Besant added that the framework would avoid 100% US tariffs on Chinese goods and postpone the implementation of China's export controls on rare earth minerals.
