Oil prices slip amid correction warnings

Oil prices declined on Monday giving up gains from early session as analysts advised caution, noting a possibility of correction in prices.

Brent crude was last trading down 0.1 percent at $68.52/bbl, while West Texas Intermediate (WTI) crude fell 0.03 percent to $63.35/bbl.

“Speculative financial investors significantly expanded their net long positions in WTI again last week, but reduced them slightly in Brent,” Germany-based Commerzbank said on Monday. “Net longs in WTI are at a record level of just short of 484,000 contracts, and in Brent are slightly below a record level at a good 565,000 contracts.”

“This gives rise to significant correction potential. If investors were to retreat, oil prices would come under considerable pressure,” it added.

Earlier today, crude prices had edged higher boosted by Saudi Arabia’s energy minister Khalid Al-Falih remarks that cooperation by participants of the OPEC-led output deal could extend beyond 2018.

Write to Nadeshda Zareen at nadeshda.zareen@argaamplus.com