Oil prices plunge amid supply glut worries

Oil prices fell on Monday as traders worried that global supplies exceed the demand.

For the week ended September 18, US crude production added 19,000 barrels to 9.136 million barrels a day, according to the recent weekly report of the Energy Information Administration.

US crude supplies of that week dropped 1.9 million barrels to 454 million barrels, 96 million barrels more than one year before. Inventories at Cushing, Oklahoma, the delivery point for the US contract, lost 0.5 million barrels to 54 million barrels, reported Xinhua.

New York Federal Reserve President William Dudley on Monday said the Fed remains on track for a likely rate hike this year.

Traders worried that the US dollar would increase against most major currencies after the interest-rate hike. A stronger dollar will make the dollar-priced crude more expensive and less attractive for buyers holding other currencies.

The West Texas Intermediate for November delivery moved down $1.27 to settle at $44.43 a barrel on the New York Mercantile Exchange, while Brent crude for November delivery decreased $1.26 to close at $47.34 a barrel on the London ICE Future Exchange.