WTI crude drops below $71 amid correction and Fed watch

WTI crude oil futures dipped below $71 per barrel on Monday, likely due to a technical correction after last week's 6% rally.

WTI crude drops below $71 amid correction and Fed watch

The surge was driven by expectations of tighter supply from additional sanctions on major oil producers Russia and Iran and optimism over China’s economic stimulus plans, which could boost demand. Additionally, recent interest rate cuts by central banks in Canada, Europe, and Switzerland helped support oil prices. Market focus has shifted to the Federal Reserve’s upcoming policy decision this week, with expectations of a 25bps rate cut that could stimulate economic growth and potentially increase oil demand.

UAE plans oil shipment cuts as OPEC+ tightens production targets

Meanwhile, the United Arab Emirates, an OPEC+ member, announced plans to reduce oil shipments early next year as the producer group aims for stricter adherence to production targets.