November WTI crude oil closed slightly lower on Monday, with prices at a 5.5-month low due to a stronger dollar and potential increased Russian oil supply. US-China trade tensions easing, alongside positive Chinese economic news, provided some support for crude prices. Concerns about a global supply glut remain a bearish factor.

Tensions in the Middle East have decreased, reducing the risk premium in crude prices. A decrease in crude oil stored on tankers worldwide is bullish for oil prices. OPEC+ agreed to a smaller-than-expected increase in crude production, with OPEC’s September production hitting a 2.5-year high.

Reduced crude exports from Russia and the potential for higher production in Iraq could increase global oil supplies. However, ongoing concerns about the war in Ukraine potentially leading to sanctions on Russian energy exports provide support for crude prices. The US proposed tariffs on China and India for purchasing Russian oil.

Last week’s EIA report showed US crude oil inventories below the seasonal average, with record production at 13.636 million bpd. Baker Hughes reported a steady number of active US oil rigs, slightly above a 4-year low. The number of US oil rigs has sharply declined in the past 2.5 years.

Read more at Yahoo Finance: Crude Oil Posts Modest Losses on Abundant Global Supplies