On Monday, oil prices experienced a decline due to concerns regarding oil demand in the world’s leading oil consumers, namely the United States and China. This drop was influenced by economic data that indicated potential challenges for the demand of oil.
International benchmark Brent crude traded at $74.60 per barrel at 09.22 a.m. local time (0622 GMT), a 1.29% decrease from the closing price of $75.58 a barrel in the previous trading session on Friday.
The American benchmark West Texas Intermediate (WTI) traded at the same time at $71.84 per barrel, down 1.39% from the previous session’s close of $70.84 per barrel.
Last week’s mixed macroeconomic data signals worldwide also contributed to the increased perception of market risk.
In the US, retail sales fell below market expectations by 0.4% month-on-month in April, while industrial production exceeded forecasts with a month-on-month rise of 0.5%.
In addition, talks on raising the US debt ceiling have also put pressure on prices.
On the supply side, markets monitored the G-7 leaders’ meeting held on May 19–21.
At the meeting, the G-7 group discussed sanctions evasion involving third countries with the aim of limiting Russia’s future energy production and curbing trade that supports Russia’s military.
Leaders agreed to further tighten economic sanctions on Russia to “undermine the country’s capacity to continue its aggression.”