WTI, Brent Crude Post Lower Settlements on Monday

SupplyFears

Oil futures fell to their lowest level in three months on Monday as investors worried that crude oil supplies will continue to outpace demand, according to Bloomberg MarketWatch.

“Supply continues to return from disruptions, refined products are severely oversupplied, crude demand is falling well short of product demand and key product demand is decelerating,” analysts at Morgan Stanley said in a note dated Sunday.

On the New York Mercantile Exchange, September West Texas Intermediate crude slipped $1.06, or 2.4%, to settle at $43.13 a barrel, marking the lowest settlement since April 25.

On the London ICE Futures Exchange, September Brent crude dropped 97 cents, or 2.1%, to settle at $44.72 a barrel.

“Given the oversupply in the refined product markets, fading refinery margins and economic run cuts, we expect crude oil demand to deteriorate further over the coming months,” Morgan Stanley analysts said.

On the New York Mercantile Exchange, August natural gas was down 3 cents, or 1.1%, settling at $2.747 per million British thermal units.