Oil Prices Slip Amid Demand Concerns and Tighter Supply Outlook

Market Sentiment:

Oil prices saw a decline on Monday, extending losses due to worries about weakening demand, despite a more optimistic view on supply for 2024.

Current Price:

By 08:45 ET (13.45 GMT), oil futures were down 1.5% at $76.88 a barrel, with the Brent contract dropping 1.2% to $81.14 a barrel.

Chinese Economic Data:

Data released over the weekend indicated a slight increase in Chinese oil demand in February, attributed to holiday spending. However, factory activity showed a decline, raising concerns about the country’s economic growth.

Market Impact:

Sluggish demand from China, coupled with ongoing production cuts by OPEC, has offset expectations of tighter supply in the market. Disruptions in the Middle East further contribute to supply concerns.

Supply Dynamics:

Saudi Aramco plans to reduce its supply of Arab heavy crude to Asian customers starting April, while the US saw a marginal increase in oil rigs last week, according to Baker Hughes data.

Upcoming Reports:

Market focus now shifts to key US inflation data and the OPEC monthly report for insights into interest rates and oil market outlook.

Stay tuned for more updates on the oil market as it navigates through demand uncertainties and evolving supply dynamics.