© Reuters. FILE PHOTO: Pump Jacks Driving at Sunset on an Oil Field in Midland, Texas have led to a worsening growth outlook for oil demand.
The international reference value for Brent crude futures () was $ 58.35 per barrel at 0249 GMT, down 18 cents, or 0.3%, from the previous year.
US. West Texas Intermediate (WTI) () futures were $ 54.29 a barrel, down 21 cents or 0.4% from the last close.
Both benchmarks fell last week, with Brent losing more than 5% and the WTI about 2%.
"Oil prices are falling at the start of the trading week due to lower demand forecasts released last week and pessimism about US-China trade," said Alfonso Esparza, senior market analyst at OANDA in Toronto.
The US-China trade dispute shook global equity markets last week, while a surprise rise in US crude oil stocks fueled pressure on oil prices, which fell by about 20% from the April 201
Goldman Sachs (NYSE 🙂 said on Sunday in a note that fears over the recession-leading US-China trade war are mounting and that a trade deal between the two countries is expected before the US presidential election in 2020.
Increasing signs of economic slowdown and intensification of trade flows have resulted in global oil demand growing at its slowest pace since the 2008 financial crisis, the International Energy Agency (IEA) said Friday.
The Paris-based agency lowered its forecast for global oil demand growth in 2019 and 2020 to 1.1 million and 1.3 million barrels a day (bpd), respectively.
Elsewhere, Russian oil production rose to 11.32 million bpd from 1 to 8 August (according to data from two industries familiar with the Department of Energy data). The Petroleum Exporting Countries (OPEC) and their allies, including Russia, agreed to extend their supply cuts until March 2020 to support oil prices The future production indicator dropped for the sixth year in a row as producers cut spending on new drilling and completions.
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