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Oil prices on Monday extended last week’s losses on concerns about slowing demand in China, but continued geopolitical risks surrounding the Middle East and Russia limited the decline.
By 01:29 GMT, Brent crude futures fell 48 cents, or 0.6 percent, to $81.60 per barrel, while US West Texas Intermediate crude fell 50 cents, or 0.6 percent, to $77.51.
Both crude oils fell last week, with Brent falling 1.8 percent and West Texas Intermediate crude falling 2.5 percent.
“Concerns about weak demand in China overshadowed the OPEC+ extension of production cuts,” said Hiroyuki Kikukawa, president of NS Trading, a unit of Nissan Securities, adding that mixed signals from US employment data prompted some traders to adjust their positions.
He continued, “But the increasing geopolitical risks will limit the losses, with the possibility of not reaching a ceasefire in the war between Hamas and Israel. The conflict between Russia and its neighbors may expand.”
Last week, China set its 2024 economic growth target at about 5 percent, which many analysts described as ambitious without further stimulus.
Data on Thursday showed that China’s crude oil imports rose in the first two months of the year compared to the same period in 2023, but were weaker than in previous months, continuing the trend of declining purchases by the world’s largest oil buyer.
