Oil futures mark their lowest settlement in over a week

Oil futures declined on Tuesday to log their lowest settlement in more than week. The price declines came on the back of a stronger U.S. dollar, said Michael Lynch, president at Strategic Energy & Economic Research. However, the drop in prices is a bit puzzling, he said, given that Chinese export data were strong for August and a lot of U.S. production remains offline following Hurricane Ida, which “should be pretty bullish.” There are “fears that delta will cause more economic disruption, but that doesn’t look like it’s going to happen,” said Lynch, speculating that the price decline may be due to profit taking, “triggered by reports that the Saudis cut prices for oil to Asia.” West Texas Intermediate crude for October delivery
fell 94 cents, or 1.4%, to settle at $68.35 a barrel on the New York Mercantile Exchange. Prices based on the front-month contract settled at their lowest since Aug. 26, FactSet data show.

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