NEW DELHI- Oil futures reversed course after rising briefly on Monday amid persistent pressure from the OPEC+ decision and uncertainty over global fuel demand growth, although the risk of supply disruptions from the Middle East conflict limited the losses.
Brent crude futures were down 0.6 percent , or 49 cents, to $78.39 a barrel while US West Texas Intermediate crude futures were at $73.65 a barrel, down 0.6 percent , or 42 cents.
“Crude seems to be under continued pressure from the OPEC+ decision … Some degree of discounting of the deeper OPEC+ cuts is justified, but as of now, the crude complex has completely disregarded them,” said Vandana Hari, founder of oil market analysis provider Vanda Insights.
Oil prices slumped more than 2 percent last week on investor skepticism about the depth of supply cuts by the Organization of the Petroleum Exporting Countries and allies including Russia, together called OPEC+, and concern about sluggish global manufacturing activity.
OPEC+ cuts announced on Thursday were voluntary in nature, raising doubts about whether or not producers would fully implement them. Investors were also unsure about how the cuts would be measured.
Geopolitical considerations were also front and center of investors’ minds as fighting resumed in Gaza. Three commercial vessels came under attack in international waters in the southern Red Sea, the US military said on Sunday, as Yemen’s Houthi group claimed drone and missile attacks on two Israeli vessels in the area. – Reuters
