Oil prices steady after 7% weekly drop

BEIJING – Oil prices steadied in early trading on Monday, following a more than 7% drop last week on worries about demand in China, the world’s top oil importer, and an easing of concerns about potential supply disruptions in the Middle East.

Brent crude futures rose 8 cents, or 0.11%, to $73.14 a barrel by 0120 GMT. U.S. West Texas Intermediate crude futures gained 10 cents, or 0.14% to $69.32 a barrel.

Brent had settled down more than 7% lower last week, while WTI lost around 8%.

That marked the contracts’ biggest weekly declines since Sept. 2, on slowing economic growth in China and falling risk premiums in the Middle East. U.S. 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.

China on Monday morning cut benchmark lending rates as anticipated, part of a broader package of stimulus measures to revive the economy. Data on Friday had shown that China’s economy grew at the slowest pace since early 2023 in the third quarter, fuelling growing concerns about oil demand. On the supply side, last week, U.S. energy firms cut the number of oil and natural gas rigs operating for the fourth time in five weeks, according to a closely watched report by energy services firm Baker Hughes BKR.O on Friday. The rig count dropped by one to 585.