Persistent concerns about the global economic outlook and the impact on oil demand drove oil prices down on Monday, while Russia again missed its target to cut oil output last month, Reuters reports.
At 05:17 GMT, global benchmark Brent crude oil futures LCOc1 fell by 14 cents, or 0.2%, to $59.28 a barrel. U.S. West Texas Intermediate crude oil futures CLc1 declined 10 cents, or 0.2%, to $53.68 a barrel.
Signs of still ample global oil supply combined with concerns about economic growth in China, the world’s largest oil importer, pressured prices lower for a second session.
“Weakness in oil price reflected a bearish view of the global energy demand, as the slowdown in manufacturing and trades seemed not to be ending anytime soon,” said Margaret Yang, market analyst at CMC Markets.
Russia, the world’s second-largest oil producer, said on Sunday it did not meet its supply reduction commitment in September because of an increase in natural gas condensate output as the country prepared for winter.
The Organization of the Petroleum Exporting Countries (OPEC), Russia and other oil producers, an alliance known as OPEC+, agreed last December to reduce supply by 1.2 million barrels per day (bpd) from the start of this year.
While market participants believe OPEC+ could decide to extend production cuts in an upcoming December meeting, economic headwinds are curbing bullish sentiment and fuelling oil demand concerns.