Investing.com – Oil prices in October posted their biggest monthly loss in nearly 2-1/2 years as investors shrugged off supportive U.S. supply-demand data and looming sanctions on Iranian crude exports amid the notion the market might be in a glut by next year.
A smaller-than-expected weekly build in U.S. crude stockpiles and encouraging gasoline and diesel consumption numbers initially sent oil prices higher Wednesday. But sentiment turned south at the end as investors appeared unconvinced that a U.S. oil embargo against Tehran beginning on Sunday would do much harm to supplies.
“The market wants to see better data, is in liquidation mode … and most of the bulls never thought it would get to here,” said Scott Shelton, broker at ICAP (LON:NXGN) in Durham, North Carolina. “At the same time, the bears are fitting the news to the price action and talking about demand destruction.”
U.S. WTI crude settled down 86 cents, or 1.3%, at $65.31 per barrel