ALBAWABA – Oil prices fell Monday on renewed concerns over waning demand in the United States (US) and China after rising almost 2 percent on Friday as Iraq voiced support for oil cuts by the Organization of Petroleum Exporting Countries and its allies (OPEC+).
Brent crude futures for January were down $0.71to $80.72 a barrel at 0400 GMT, according to Reuters, and West Texas Intermediate (WTI) crude futures for December were at $76.49, down 68 cents
Brent slipped 0.87 percent and WTI 0.88 percent, as both benchmarks were well below the 100-day moving average of $86.61 a barrel for WTI and $82.31 a barrel for Brent.
Oil prices lose about 12 percent in the past three weeks, Bloomberg reported.
Meanwhile, oil supply from the Middle East — the source of about a third of the world’s crude — has remained unaffected by the Israeli onslaught on Gaza. Meanwhile, oil shipments from Russia and the United States (US) are increasing, according to Bloomberg.
Oil prices shift with changing market dynamics - Shutterstock
The US Energy Information Administration (EIA) said last week crude oil production in the US this year will rise by slightly less than previously expected while demand will fall.
Next year, per capita US gasoline consumption could fall to the lowest level in two decades, EIA said, as reported by Reuters.
Weak economic data last week from China, the world's biggest crude oil importer, also bolstered fears of faltering demand.
China's consumer prices fell to pandemic-era lows in October, casting doubts on the strength of the country's economic recovery.
Additionally, Reuters pointed out to refiners in China ordered fewer supplies than expected from Saudi Arabia for December, the world's largest exporter.
In the meantime, OPEC+ will meet on November 26 to discuss supply and output policies, as top oil exporters Saudi Arabia and Russia confirmed last week they would continue with their additional voluntary oil cuts until the end of the year.
