(MENAFN- Trend News Agency)
Oil prices dipped on Monday as upbeat U.S. economic data
rekindled concerns over aggressive rate hikes by the Federal
Reserve, trend reports citing euronews .
The West Texas Intermediate (WTI) for January delivery lost 3.05
U.S. dollars, or 3.8 percent, to settle at 76.93 dollars a barrel
on the New York Mercantile Exchange. Brent crude for February
delivery dropped 2.89 dollars, or 3.4 percent, to close at 82.68
dollars a barrel on the London ICE Futures Exchange.
The above market reactions came after data showed activity in
the U.S. services sector came in stronger than expected for
The Institute for Supply Management reported on Monday that the
U.S. services PMI (Purchasing Managers' Index) registered 56.5
percent last month, up from the October's reading of 54.4 percent.
Numbers over 50 percent indicate expansion in the sector.
Economists polled by The Wall Street Journal had expected the index
to drop to 53.7 percent.
The data raised concerns that the Fed may have to keep
tightening policy for longer to cool the economy, experts
Traders also digested a key decision by the Organization of the
Petroleum Exporting Countries (OPEC) and its allies, collectively
known as OPEC+.
The oil alliance on Sunday agreed to stick to its existing
policy of reducing oil production by 2 million barrels per day from
November until the end of 2023 amid market uncertainties.
For the week ending Friday, the WTI advanced nearly 4.9 percent,
while Brent rose 2.2 percent, based on the front-month
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