Brent crude futures dropped to around $73.5 per barrel on Monday, extending a 2% decline from the previous session as weak economic signals from China, the world’s largest oil importer, weighed on demand outlook.
Oil extends losses on China outlook
Recent data revealed sluggish consumer inflation and continued declines in factory-gate prices for October, underscoring persistent deflation risks despite Beijing’s recent stimulus efforts. Additionally, Beijing’s debt-swap announcement last Friday signaled limited support for housing and consumption. In the U.S., supply concerns eased as storm Rafael in the Gulf of Mexico had minimal impact on production.
Global market remain cautious
Meanwhile, global oil markets remain cautious amid uncertainty around potential sanctions on OPEC members Iran and Venezuela under Trump’s renewed presidency, which could tighten supply. With an expected global oil surplus in 2024, investors are now focused on upcoming outlooks, starting with OPEC’s report on Tuesday.
WTI crude futures also declined, trading around $70 per barrel, extending a nearly 3% drop from the previous session on similar concerns about China’s demand outlook.
