Oil prices fall amid Chinese demand concerns, geopolitical events
Date
3/11/2024 5:47:47 AM
(MENAFN) Oil prices commenced the current week's trading on a downward trajectory, extending the losses observed in the preceding week. Concerns revolving around a potential slowdown in demand from China have been cited as the primary driver behind this decline. Despite these apprehensions, the persistent geopolitical tensions in regions such as the Middle East and Russia have served to mitigate the extent of the price decrease.
As of 0420 GMT, brent crude futures experienced a decrease of 55 cents, translating to a decline of 0.67 percent, with prices settling at USD81.53 per barrel. Similarly, US West Texas Intermediate crude witnessed a decrease of 58 cents, marking a decline of 0.74 percent, with prices reaching USD77.43.
Last week saw both Brent and West Texas Intermediate crude oils registering declines, with Brent experiencing a drop of 1.8 percent and West Texas Intermediate crude witnessing a 2.5 percent decrease.
Hiroyuki Kikukawa, president of NS Trading, a unit of Nissan Securities, highlighted that concerns surrounding weak demand in China overshadowed the decision by OPEC+ to extend production cuts. Additionally, mixed signals emanating from US employment data prompted some traders to make adjustments to their positions.
Despite these factors weighing on market sentiment, the escalation of geopolitical risks has served to temper the extent of the price decline. The potential ramifications of ongoing conflicts, such as the one between Hamas and Israel, coupled with the possibility of further tensions between Russia and its neighboring countries, have instilled a degree of uncertainty in the market, thereby limiting the downward pressure on oil prices.
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