Global oil prices rebound after dropping more than 7 per cent

BEIJING: Global oil prices steadied on Monday after a sharp decline last week, which saw prices drop by more than 7 per cent.

Concerns about slowing demand in China, the world’s largest oil importer, and a reduced fear of supply disruptions from the Middle East contributed to the earlier drop.

According to Reuters, Brent crude futures edged up by 8 cents (0.11 per cent) to $73.14 per barrel by 0120 GMT, while US West Texas Intermediate (WTI) crude futures increased by 10 cents (0.14 per cent) to $69.32 per barrel.

Last week, Brent prices fell by over 7 per cent, and WTI recorded a loss of around 8 per cent, marking their largest weekly declines since early September. The drop was driven by signs of slower economic growth in China and reduced tensions in the Middle East.

US President Joe Biden suggested on Friday there was a chance to work towards easing tensions between Israel and Iran, which could potentially reduce the risk of future supply disruptions. However, over the weekend, tensions escalated as Israel signalled plans to target Hezbollah-linked sites in Beirut.

In an effort to boost its economy, China cut its benchmark lending rates on Monday as part of a larger package of stimulus measures.

This follows data from last Friday showing that China’s economic growth in the third quarter was the slowest since early 2023, raising concerns about its oil demand.

Meanwhile, on the supply side, US energy companies reduced the number of active oil and natural gas rigs for the fourth time in five weeks, according to data from energy services firm Baker Hughes. The rig count fell by one, leaving 585 rigs in operation.

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