Oil prices eased on Monday, reversing their rally on Friday, as renewed concerns over waning demand in the US and China dented market sentiment.
Brent crude futures for January were down 35 cents, or 0.4 percent, at $81.08 a barrel, while the US West Texas Intermediate (WTI) crude futures for December were at $76.82, down 35 cents, or 0.5 percent in early trading hours, Reuters reported.
Both benchmarks gained nearly 2 percent last Friday as Iraq voiced support for oil cuts by OPEC+, but lost about 4 percent for the week, notching their third weekly losses for the first time since May.
“Investors are more focused on slow demand in the US and China, while worries over the potential supply disruptions from the Israel-Gaza conflict have somewhat receded,” the report said, quoting Hiroyuki Kikukawa, president of NS Trading, a unit of Nissan Securities.
The US Energy Information Administration (EIA) said last week that crude oil production in the US this year will rise by slightly less than previously expected while demand will fall.
Weak economic data last week from China, the world’s biggest crude oil importer, also increased fears of faltering demand.
Additionally, refiners in China asked for less supply from Saudi Arabia.
Top oil exporters Saudi Arabia and Russia confirmed last week that they would continue with their additional voluntary oil output cuts until the end of the year as concerns over demand and economic growth continue to drag on crude markets.
OPEC+, the Organisation of the Petroleum Exporting Countries and allies including Russia, will meet next on November 26.
Follow us on
