Islamabad, Oct 21: After falling more than 7% last week due to concerns about demand in China, the world’s largest oil importer, and a reduction in anxiety about possible supply interruptions in the Middle East, oil prices steadied in early trade on Monday.
Oil prices by 0120 GMT, Brent crude futures had increased by 8 cents, or 0.11%, to $73.14 per barrel. At $69.32 per barrel, U.S. West Texas Intermediate crude futures increased by 10 cents, or 0.14%.
Last week, Brent had dropped more than 7%, and WTI had dropped about 8%.
Due to the Middle East’s declining risk premiums and China’s slowing economic development, those were the contracts’ largest weekly losses since September 2.
US President Joe Biden said on Friday there was an opportunity to “deal with Israel and Iran in a way that ends the conflict for a while”.
The conflict in the Middle East however intensified over the weekend as Israel on Sunday said it was preparing to attack sites in the Lebanese capital of Beirut linked to Hezbollah’s financial operations.
As expected, China lowered benchmark lending rates on Monday morning as part of a larger set of stimulus measures to boost the economy.
Concerns over the demand for oil have grown after data released on Friday revealed that China’s economy expanded in the third quarter at its slowest rate since early 2023.
According to a highly followed report released on Friday by energy services company Baker Hughes BKR.O, U.S. energy companies reduced the number of oil and natural gas rigs operating last week for the fourth time in five weeks with regard to supply. There was a one-rig decrease to 585.
