Oct 21 2024: Oil prices remained stable on Monday, following a significant drop of over 7% last week due to concerns about declining demand in China, the world’s largest oil importer, and reduced fears of supply disruptions in the Middle East.
By 0747 GMT, Brent crude futures rose by 38 cents, or 0.5%, to $73.44 a barrel, while U.S. West Texas Intermediate (WTI) crude futures gained 44 cents, or 0.6%, to trade at $69.66 a barrel.
Last week, Brent dropped by more than 7%, and WTI saw an 8% decline, marking their biggest weekly losses since early September. These declines were driven by China’s slowing economic growth and lower risk premiums from the Middle East.
On Monday, China lowered its benchmark lending rates as expected, part of a broader effort to stimulate its slowing economy. Friday’s data showed China’s economy grew at its slowest pace since early 2023 in the third quarter, heightening concerns about oil demand.
Despite these concerns, Saudi Aramco’s CEO expressed optimism during an energy conference in Singapore, stating that he remains “fairly bullish” on China’s oil demand due to government policy support aimed at stimulating growth, as well as rising demand for jet fuel and liquid-to-chemicals.
In the U.S., the Energy Information Administration reported a 100,000-barrel-per-day increase in oil production, reaching a record 13.5 million barrels per day for the week ending October 11.
Meanwhile, U.S. envoy Amos Hochstein is set to meet with Lebanese officials in Beirut to discuss a potential ceasefire between Israel and Hezbollah, following Israel’s intensified airstrikes on Hezbollah’s financial assets overnight, according to sources from Reuters.
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