New York: Oil prices continued their downward trend on Monday as fears of supply disruptions from a US storm receded and China’s recent economic stimulus measures fell short of investor expectations for boosting fuel demand in the world’s second-largest oil consumer. Brent crude futures saw a reduction of 19 cents, or 0.3%, bringing the price to $73.68 per barrel. Similarly, US West Texas Intermediate crude futures experienced a decline of 25 cents, or 0.4%, settling at $70.13 per barrel. This follows both benchmarks’ more than 2% drop last Friday.
According to Qatar News Agency, oil consumption in China, which has historically driven global demand growth, has shown minimal expansion in 2024. This stagnation can be attributed to the country’s slowed economic growth, decreased gasoline use due to the rapid adoption of electric vehicles, and the substitution of diesel with liquefied natural gas for truck fuel. Furthermore, the easing of concerns regarding potential supply disruptions caused by storm Rafael in
the US Gulf of Mexico has also contributed to the lowering of oil prices.