Oil prices fell on Monday, unwinding steep gains last week that were spurred by mounting expectations of a second OPEC supply cut and as colder weather began to eat into U.S. fuel stocks.
U.S. crude was trading 51 cents lower at $62.92 a barrel by 6:32 a.m. EST, while Brent crude traded down 60 cents at $64.02.
"The run up that we had was too much, too soon," said Olivier Jakob of Petromatrix.
U.S. crude hit a 17-month low of $54.86 on November 17, but has since recovered, climbing by around $4 last week and reaching a peak of $63.82 early on Monday, the highest since September 28.
Most OPEC ministers have said they still see the need for a further output cut when the producer group meets in Abuja next week and that, regardless of price, the market is oversupplied.
The group already agreed to reduce supplied by 1.2 million barrels per day from November 1.
"The price is firming somewhat, but against a weakening dollar, and there is still a lot of excess volume out there," OPEC President Edmund Daukoru said in Abu Dhabi on Monday.
The dollar's slide to a series of 20-month lows against the euro (EUR=) has triggered buying across the commodities complex as dollar-denominated assets are relatively cheap, but it has eroded revenues for oil producing countries.
Some analysts have said, however, OPEC could be more worried about the forecasts of economic weakness in the United States, the world's biggest oil consumer, that have contributed to the dollar's slide.
A weaker U.S. economy would impact oil demand and lower oil prices, although in the immediate term, tightening inventories could provide some support.
U.S. crude was trading 51 cents lower at $62.92 a barrel by 6:32 a.m. EST, while Brent crude traded down 60 cents at $64.02.
"The run up that we had was too much, too soon," said Olivier Jakob of Petromatrix.
U.S. crude hit a 17-month low of $54.86 on November 17, but has since recovered, climbing by around $4 last week and reaching a peak of $63.82 early on Monday, the highest since September 28.
Most OPEC ministers have said they still see the need for a further output cut when the producer group meets in Abuja next week and that, regardless of price, the market is oversupplied.
The group already agreed to reduce supplied by 1.2 million barrels per day from November 1.
"The price is firming somewhat, but against a weakening dollar, and there is still a lot of excess volume out there," OPEC President Edmund Daukoru said in Abu Dhabi on Monday.
The dollar's slide to a series of 20-month lows against the euro (EUR=) has triggered buying across the commodities complex as dollar-denominated assets are relatively cheap, but it has eroded revenues for oil producing countries.
Some analysts have said, however, OPEC could be more worried about the forecasts of economic weakness in the United States, the world's biggest oil consumer, that have contributed to the dollar's slide.
A weaker U.S. economy would impact oil demand and lower oil prices, although in the immediate term, tightening inventories could provide some support.
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