Brent crude drops more than $2 per barrel

Crude oil prices were down sharply on Monday as investment funds got rid of their exposure to the sector ahead of Organization of Petroleum Exporting Countries production cuts, due to go into effect on November 1. More than 52,000 contracts were sold, according to the Commodity Futures Tradning commission, as speculators divested themselves of long positions, which bet that prices will go higher, indicating that they do not believe the OPEC cuts will have any real effect on prices.

Brent crude December contracts were $2.03 lower to $59.05 per barrel by late afternoon in London, while West Texas Intermediate crude for December delivery fell $1.97 to $58.78 on the New York Mercantile Exchange by early afternoon.