Oil prices hit a 10-month low on Monday, dropping to their lowest since January after news emerged that Saudi Arabia and other OPEC oil producers are considering an increase in output.
The news pushed Brent crude futures for January down by 4.7 percent to $83.55 a barrel. The U.S. West Texas Intermediate (WTI) crude futures for December dropped by 5 percent to $76.06 while the January contract was down to $76.29.
According to the Wall Street Journal, the OPEC+ meeting scheduled for the first week of December will take up the proposal to increase output by up to 500,000 barrels per day (bpd).
The surge in Covid-19 cases in China has also added to the recent decline in prices. The oil prices are also under stress as investors fear that the increase in interest rates by the Federal Reserve can push the US into a recession.
Goldman Sachs also cut its oil price forecast on Monday by $10 to $100 per barrel, citing lockdowns in China.