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Oil Futures Recover After Plunging To 10-Month Low, Settle Modestly Lower

Crude oil prices fell to a ten-month low on Monday but regained some lost ground and ended the day's session modestly lower.

Worries about the outlook for demand from China contributed to the early slump by oil prices following a surge in Covid-19 cases in the country and the imposition of stringent restrictions in several cities, including Shanghai and Beijing.

Reports that Saudi Arabia and other members of the Organization of the Petroleum Exporting Countries are likely to discuss increasing output during their meeting in December also weighed on oil prices earlier in the day.

However, prices came off the day's lows after Saudi Arabia's energy minister denied the report about the country looking to increase output.

West Texas Intermediate Crude oil futures ended lower by $0.35 or about 0.4% at $79.73 a barrel, off a low of $75.08 a barrel.

Brent crude futures were down $0.31 or 0.33% at $87.31 a barrel a little while ago, after having plunged to $83.26 a barrel earlier.

A stronger dollar also hurt oil prices. The dollar climbed higher amid rising speculation the Federal Reserve will continue to aggressively hike interest rates to rein in inflation.

The dollar index surged to 107.99 a little past noon and was hovering around 107.80 a little while ago, still up more than 0.8% from the previous close.

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