Oil Settles Lower on Demand Concerns
WTI crude oil futures fell 0.9% on Monday, closing at $70.4 per barrel, as concerns over sluggish demand from China and a surprise slowdown in European manufacturing dampened market sentiment.
The eurozone reported an unexpected contraction in business activity, with services stagnating and manufacturing output deteriorating further. At the same time, market participants awaited potential stimulus measures from the Chinese government, which could reignite fuel demand in the world's top oil importer, especially after a significant decline in refined oil imports this year due to its struggling manufacturing sector.
On the supply side, geopolitical tensions added to market uncertainty as Hezbollah fired over 100 rockets into northern Israel, including areas near Haifa, raising fears of a broader conflict in the key oil-producing region. Additionally, a tropical disturbance in the Gulf of Mexico prompted Shell to shut down production at several of its facilities as a precautionary measure.
Source : Trading Economics
