By Colleen Howe
BEIJING (Reuters) – Oil prices stabilized at the beginning of the week after experiencing a more than 7% decline last week due to concerns about demand in China, the world’s largest oil importer, and a reduction in worries about potential supply disruptions in the Middle East.
Crude oil futures increased by 8 cents, or 0.11%, to $73.14 a barrel by 0120 GMT. Meanwhile, U.S. West Texas Intermediate crude futures rose by 10 cents, or 0.14%, to $69.32 a barrel.
Last week, Brent saw a decline of over 7%, while WTI dropped by around 8%.
These were the largest weekly decreases since September 2, driven by the slowing economic growth in China and decreasing risk premiums in the Middle East. U.S. President Joe Biden mentioned on Friday the possibility of finding a way to address the conflict between Israel and Iran in a manner that could bring about a temporary resolution.
Over the weekend, tensions in the Middle East escalated as Israel announced its readiness to target sites in Beirut, Lebanon, associated with Hezbollah’s financial activities.
China, on Monday morning, implemented expected cuts to its benchmark lending rates as part of a broader stimulus package aimed at rejuvenating the economy.
Recent data released on Friday revealed that China’s economy experienced its slowest growth since early 2023 in the third quarter, prompting concerns about oil demand.
On the supply front, U.S. energy companies reduced the number of oil and gas rigs in operation for the fourth time in the last five weeks, according to a report from energy services firm Baker Hughes BKR.O on Friday. The rig count decreased by one to 585.