2023.10.3019:23:00UTC+00Oil Futures Settle Sharply Lower As Focus Shifts To Central Bank Meetings

Oil prices declined sharply on Monday amid easing concerns about supply disruptions from the Middle East region.

Investors chose to wait for the Federal Reserve's monetary policy announcement, due on Wednesday, and the non-farm payroll data for the month of October, due on Friday.

Although Israeli troops have entered the Gaza Strip for the first time in nearly two decades, it's unclear whether the maneuvers mark the official start of an invasion.

U.S. airstrikes targeted Iranian targets in Syria last week, retaliating to a flurry of recent rocket and drone assaults against American soldiers in Iraq and Syria.

West Texas Intermediate Crude oil futures for December ended lower by $3.23 or about 3.8% at $82.31 a barrel.

Brent crude futures settled at $87.45 a barrel, down $3.03 or about 3.4%.

On the economic front, investors await global manufacturing data and the all-important U.S. jobs report this week for clarity on the economic outlook.

The Fed, Bank of England and Bank of Japan are set to hold their monetary policy meetings this week, with economists expecting a status quo policy from the U.S. central bank and the U.K. central bank.

Analysts expect the Bank of Japan to potentially further tweak its yield curve control (YCC) policy when it meets on Tuesday.