Oil Ends Down, Reversing Rally, as OPEC Output Seen Rising

Reuters

NEW YORK, Nov 30 (Reuters) - Crude oil fell on Monday, reversing an early rally after a survey estimated higher OPEC output in November, while a stronger dollar weighed on demand for commodities priced in the currency.

U.S. government data showed no meaningful decline in shale oil output in September despite a steady drop in rig counts, another factor that pressured crude, along with a tumble in U.S. gasoline and ultralow sulfur diesel futures before expiration of their front-month contracts.

Brent crude futures settled down 25 cents, or 0.6 percent, at $44.61 a barrel, erasing an early rally that sent Brent up nearly $1.

U.S. crude's West Texas Intermediate (WTI) futures finished down 6 cents at $41.65, versus a session high at $42.61.

Both Brent and WTI fell about 10 percent for November.

"We feel the only real hope for oil bulls now would be a year-end destocking of crude that will create draws" in U.S. crude, said Tariq Zahir of New York's Tyche Capital Advisors, which holds bearish positions on WTI.

"Even if we get a bounce in any fashion, that will be prime opportunity for bears like me to try and ride the elevator down to the $30 handle."


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