Jan 29, 2024: In London, oil prices experienced a decline on Monday, influenced by challenges in China’s struggling property sector and escalating concerns over supply disruptions in the Middle East. Brent crude futures saw a dip of 23 cents, reaching $83.32 per barrel by 0937 GMT, while U.S. West Texas Intermediate crude futures edged down 27 cents to $77.74.
The decision for the liquidation of China Evergrande Group’s properties by a Hong Kong court intensified concerns about the deepening crisis in China’s real estate sector, negatively impacting sentiment on crude demand in the world’s largest oil importer.
Additionally, the Middle East witnessed heightened risks of a widening conflict, with a recent drone attack by Iran-backed militants on U.S. forces in Jordan over the weekend further fueling supply disruption concerns in the region. The Red Sea also faced increased attacks by Houthi militants on vessels, contributing to the overall apprehension in the oil market.