12.06.202319:02:00UTC+00Oil Futures Settle Sharply Lower

Oil prices fell sharply on Monday amid concerns about the outlook of energy demand, and on rising Russian crude supply.

A downward revision in crude oil price forecast by Goldman Sachs weighed as well on the commodity.

West Texas Intermediate Crude oil futures for July ended lower by $3.05 or about 4.4% at $67.12 a barrel, dropping to a near 3-month low.

Brent crude futures were down $3.15 or 4.21% at $71.64 a barrel a little while ago.

Goldman Sachs Group has cut crude oil price forecast for December by nearly 10% to $86 a barrel from $95 a barrel, citing signs of increasing supply and slower demand for crude.

Goldman Sachs has also revised down its WTI forecast for December to $81 a barrel, despite Saudi Arabia's announcement of output cuts and efforts by OPEC+ to limit supplies into 2024.

The focus is on the Federal Reserve's monetary policy announcement, due on Wednesday. The Fed is likely to pause its recent interest rate increases. The central bank's accompanying statement as well as key U.S. consumer inflation data are expected to provide clues about the outlook for interest rates.