Oil prices stable after 7% drop in a week
Early trading on Monday saw oil prices stabilize after a drop of more than 7% last week due to concerns over demand in China, which is the world's largest oil importer. Also, there were fewer worries about possible supply disruptions in Middle East.
Brent crude futures were up 8 cents or 0.11% to $73.14 per barrel at 0120 GMT. U.S. West Texas Intermediate Crude Futures rose 10 cents or 0.14%, to $69.32 per barrel.
Brent settled more than 7% lower in the last week while WTI dropped around 8%.
The contracts saw their biggest weekly drop since September 2, due to a slowing of the Chinese economy and a fall in risk premiums. Joe Biden, the U.S. president, said that there was a chance to "deal [with] Israel and Iran so as to end the conflict temporarily".
Israel announced on Sunday that it would attack financial sites linked to Hezbollah in Beirut, the capital of Lebanon.
China cut its benchmark lending rate on Monday morning as expected, as part of a wider package of measures to stimulate the economy.
The data released on Friday showed that China's third-quarter economic growth was the lowest since the first quarter of 2023, which has fueled growing concerns over oil demand.
Baker Hughes BKR.O, a leading energy services company, released a report on Friday that showed the U.S. oil and gas companies had cut their number of operating rigs for the fourth consecutive week. The number of rigs dropped from 585 to 585. (Reporting and editing by Colleen Waye, Sonali Paul).
(source: Reuters)
