Oil closes lower as stock market plunges, stronger dollar weighs

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Oil prices fell Monday as declines in stock markets and increased USA drilling continue to knock months of bullish sentiment for crude.

US West Texas Intermediate (WTI) crude settled down US$1.30, or 1.99 per cent, at US$64.15.

Brent futures, the global benchmark, were up 24 cents, or 0.3 percent, at $69.89 a barrel by 0635 GMT.

He conceded that he "potentially" might be underestimating the capability of USA shale producers to satisfy global demand to the degree that $80 oil might not happen; however, "we expect a lot of growth this year but don't find it disruptive to the overall oil price for 2018".

The oil market, the Dow Jones, and the S&P 500 are all down Monday.

The sell-off in the stock market came after a monthly United States jobs report on Friday that showed the fastest wage growth in almost nine years exacerbated a broader market sell-off that was already under way as European stocks backed off record highs and a rising dollar dented commodities prices.

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At the Multi Commodity Exchange, crude oil for delivery in March shed Rs 32, or 0.77 per cent, to Rs 4,145 per barrel, with a business volume of 160 lots.

"What's good about this correction is that it is based on bullish economic news".

Oil prices had hovered near three-year highs of more than $70 a barrel last month. "I think the minute we see stocks get stability I think you'll see oil price stability as well", he added.

Data from the USA government last week showed that output climbed above 10 million barrels per day in November for the first time since 1970, as shale drillers expanded operations after gains in oil prices past year.

Russia's crude oil production in January was flat compared to December 2017, after rising production at foreign firm-led projects compensated for small declines at major Russian oil producers Rosneft and Lukoil.

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