Oil dips near 2-month lows as supply concerns ease

Oil prices hovered near two-month lows on Monday as supply fears receded while concerns over China’s fuel demand and rising interest rates weighed on prices.

Brent crude futures for January had slipped 28 cents, or 0.3 per cent, to $87.34 a barrel by 0103 GMT after settling at their lowest since Sept. 27.

U.S. West Texas Intermediate (WTI) crude futures for December were at $80 a barrel, down 8 cents, ahead of the contract’s expiry later on Monday. The more active January contract fell 21 cents to $79.90 a barrel.

Both benchmarks closed Friday at their lowest since Sept. 27, extending losses for a second week, with Brent down 9 per cent and WTI 10 per cent lower.