WTI finds support from more oil cuts by Russia, hovers around $72.10

West Texas Intermediate (WTI) price struggles to regain recent losses, hovering around $72.10 per barrel in the Asian market on Monday. Crude oil prices find support from Russian Deputy Prime Minister Alexander Novak's statement. He mentioned that Russia is considering deepening oil export cuts in December by potentially 50,000 barrels per day (bpd) or more to bolster global oil prices. These additional cuts would go beyond the 300,000 bpd that had already been agreed upon for this year.

In addition, adverse weather conditions in Russia have contributed to the support for Crude oil prices. Moscow suspended approximately two-thirds of loadings from ports. Moreover, the geopolitical situation has provided a boost to oil prices, with concerns rising due to Houthi attacks on ships near Yemen. The attacks have raised worries about potential disruptions in oil supply, leading shipping firms to consider avoiding the Suez Canal as Houthi militants in Yemen escalated their assaults on commercial vessels in the Red Sea.

Moreover, the bullish forecast from the International Energy Agency (IEA) that oil consumption will increase by 1.1 million bpd in 2024 contributed to underpinning the WTI price. On Friday, the data showed that Baker Hughes Rig Counts reduced to 501 from the previous number of 503, which suggests slightly less consumption of products and services produced by the oil service industry.

The US Dollar Index (DXY) has experienced a nearly 4% weakening over the past two months. A further decline could stimulate oil demand from other countries as it becomes more affordable to purchase oil. The recent challenges for the US Dollar stem from dovish comments made by various Federal Reserve officials. Investor attention will now shift to Consumer Confidence and Existing Home Sales Change on Wednesday.