Oil prices rose from multi-month lows on Monday, as continuing concerns about falling demand as a result of a bleak economic outlook overcame some positive economic data from China and the United States.

Brent crude futures were down 51 cents, or 0.5 percent, at $94.41 per barrel by 0816 GMT, erasing earlier gains. The price of West Texas Intermediate crude in the United States was $88.58 a barrel, down 43 cents, or 0.5 percent.

Front-month Brent prices fell 13.7 percent last week, marking its worst weekly decrease since April 2020, while WTI fell 9.7 percent as fears of a recession weighing on oil demand impacted on prices.

“Last week’s price action demonstrated unequivocally that recession-driven demand concerns outnumber supply concerns. One could even argue that the conflict premium has vanished “According to PVM analyst Stephen Brennock.

Both contracts recovered some of their losses on Friday after the United States, the world’s largest oil consumer, surprisingly increased job growth in July.

China stunned investors on Sunday with faster-than-expected increase in exports.

According to customs data, China, the world’s largest oil importer, imported 8.79 million barrels per day (bpd) of petroleum in July, up from a four-year low in June but still 9.5 percent less than a year earlier.

In Europe, Russian crude and oil product exports continued to flow ahead of an anticipated ban imposed by the European Union on December 5.

Last week, the Bank of England warned of a prolonged recession in the United Kingdom.

Despite lowering gas prices, demand for gasoline in the United States remains weak, and stocks are increasing.

In terms of US output, energy companies lowered the number of oil rigs by the highest since September last week, the first dip in ten weeks.

The clean energy sector in the United States received a boost after the Senate passed a $430 billion measure on Sunday.

Source: Reuters

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