Markets witnessed a continued decline in global oil prices at the start of the week, with oil futures prices continuing to drop on Monday. This decrease comes amid the “OPEC+” group’s move to increase production, in addition to the rising economic challenges in China, the world’s largest oil importer.
According to Bloomberg, the price of Brent crude, the global oil benchmark, dropped to around $76 a barrel, registering a 2% decline from Friday’s closing. West Texas Intermediate, the U.S. benchmark, was traded at about $73 a barrel.
The “OPEC+” group, which includes 23 oil-exporting countries led by Saudi Arabia and Russia, intends to increase its production by 180,000 barrels per day starting October 1st. This move is part of a strategy to gradually retreat from the production cuts that began in 2022.
At the same time, economic data indicate the continued contraction of manufacturing activity in China for the fourth consecutive month, amid an exacerbating real estate sector crisis. These developments raise concerns about a slowdown in the world’s second-largest economy.
Last month, oil prices lost most of their gains for this year amid increasing signs of a global economic slowdown. The recent weeks have also seen sharp price fluctuations, with the largest daily swings recorded during August.
By 10:20 am, Brent crude’s price had fallen by 0.8% to $76.33 a barrel for November deliveries, while West Texas Intermediate decreased by 0.7% to $73.02 a barrel for October deliveries.
These developments reflect the prevailing uncertainty in global oil markets, with ongoing tension between increased production by “OPEC+” and concerns about global demand amidst economic challenges.
