Oil prices fell amid fears of a global economic slowdown

Oil prices fell in early Asian trading on Monday, as fears of a global economic slowdown and the possibility of the Federal Reserve raising interest rates were met with expectations of a reduction in supplies in light of the cuts announced by the OPEC + group.

Brent crude futures fell 20 cents, or 0.3%, to $75.21 a barrel by 0044 GMT, after settling 0.8% higher on Friday. US West Texas Intermediate crude fell 23 cents, or 0.3%, to $70.41, after closing up 1.1% in the previous session.

Brent fell for the fourth consecutive quarter at the end of June, while WTI crude recorded a second quarterly decline as the world’s two largest economies, the United States and China, slowed in the second quarter.

Fears of a further slowdown hurting fuel demand grew after data on Friday showed that inflation in the United States was still above the central bank’s 2 percent target and raised expectations that it would raise interest rates again.

Higher interest rates would strengthen the US currency, making commodities more expensive for holders of other currencies and also reduce demand for oil.

Some analysts expect reduced supplies and higher prices in the second half of the year after Saudi Arabia, the world’s largest oil exporter, pledged to cut output by about 1 million barrels per day more in July while the United States gradually replenishes its strategic oil reserves.

A Reuters survey showed that OPEC’s oil production declined only slightly in June, as production increases in Iraq and Nigeria limited the impact of cuts from other producers.