Oil declined further on Monday due to concerns about sluggish demand in China, despite ongoing geopolitical tensions in the Middle East and Russia providing some support, as per a Reuters report.
Brent futures dropped by 0.7 per cent to $81.53 a barrel, while US West Texas Intermediate (WTI) fell 0.7 per cent to $77.44.
Both benchmarks declined last week, with Brent down 1.8 per cent and WTI 2.5 per cent lower, driven by weak Chinese demand signals.
NS Trading’s president, Hiroyuki Kikukawa, noted that worries over Chinese demand overshadowed OPEC+’s supply cuts extension. He added that geopolitical risks, including the Israel war on Gaza and tensions in Russia, capped losses.
Despite upbeat US job growth data, concerns lingered about the unemployment rate and wage gains, possibly affecting the Federal Reserve’s rate cut plans.
Moreover, China’s economic growth target of around 5 per cent for 2024 was seen as ambitious without substantial stimulus, impacting crude imports.
OPEC+ decided to extend its output cuts into the second quarter, potentially tightening the market as demand rebounds.
