Oil continues to lose due to unfavorable economic factors

Oil prices declined for the second consecutive day on Monday, influenced by persistent concerns about global demand amidst challenging economic conditions. This overshadowed geopolitical tensions in the Middle East and an attack on a Russian fuel export terminal over the weekend.

As of 0105 GMT, the price of Brent crude dropped by 41 cents, or 0.5 percent, reaching $78.15 per barrel, following a 54-cent decline at the Friday settlement.

West Texas Intermediate crude futures for February delivery experienced a 2-year low at $73.39 per barrel, with the contract set to expire later on Monday. The most active March contracts for West Texas Intermediate crude recorded $72.95 per barrel, marking a 30-cent decrease.

Despite reports of an alleged Ukrainian drone attack on a Russian fuel export station, prices remained relatively stable. Novatek, a Russian gas producer, announced on Sunday that it had to suspend some operations at the Baltic Sea-facing station due to a fire.

In the Middle East, conflict persists in the Gaza Strip, and the United States conducted airstrikes on another anti-ship missile prepared by the Houthis in Yemen, aiming to launch it into the Gulf of Aden on Saturday.

Houthi attacks in the Red Sea and Gulf of Aden have disrupted global trade and contributed to a reduction in crude oil supply in European and African markets. The complex interplay of geopolitical events and economic factors continues to influence oil market dynamics.