02.10.202319:09:00UTC+00Oil Futures Settle Sharply Lower

Crude oil prices fell sharply on Monday, hurt by a stronger dollar and concerns about prospects of rising supplies in the market as well as outlook for energy demand due to the impact of higher interest rates on economic growth.

Disappointing data on manufacturing activity in the Euro area, and uncertainty about the pace of growth in the world's second largest economy hurt oil prices.

West Texas Intermediate Crude oil futures for November ended down $1.97 or about 2.2% at $88.82 a barrel.

Brent crude futures settled at $90.71 a barrel, down $1.49 or about 1.6% from the previous close.

The focus is now on the meeting of the Organization of the Petroleum Exporting Countries (OPEC) and allies on Wednesday (October 4).

"The crude price rally is quickly cooling as global bond yields continue to skyrocket. The global outlook is quickly taking a turn for the worse and that is both driving the king dollar trade again and weighing on the crude demand outlook," says Edward Moya, Senior Market Analyst at OANDA. He adds: "Commodities are looking vulnerable here as demand prospects will be taking a hit here and as the dollar could be poised for another rally here."