Traders have been banking on more robust stimulus in China to boost the world's second-largest economy. The market, meanwhile, continues to monitor the Middle East in anticipation of a retaliatory strike by Israel against Iran.
Lack of clarity on China's economic stimulus plans sent oil futures tumbling on Monday, as traders adopted a wait and see approach to the impact of rising tensions in the Middle East.
The Organization of the Petroleum Exporting Countries further trimmed its forecast for oil-demand growth, as it prepares to bring some barrels back into the market despite weaker global prices.
OPEC on Monday cut its forecast for global oil demand growth in 2024 reflecting data received so far this year and also lowered its projection for next year, marking the producer group's third consecutive downward revision.
Russia cut crude oil output in September by 28,000 barrels per day (bpd) to about 9 million bpd, the Organization of the Petroleum Exporting Countries (OPEC) said on Monday, citing data from secondary sources such as consultancies.
Oil futures slumped after a weekend announcement by Chinese authorities failed to provide details on a stimulus plan sufficient to reassure investors nervous about crude demand.
Crude oil futures plunge as China's deflation worries and uncertain stimulus plans spark bearish sentiment, erasing nearly all last week's gains.
John Driscoll, chief strategist at JTD Energy Services, discusses the outlook for the oil market.
Geopolitical tensions and China's deflation concerns weigh on natural gas and oil prices, as markets await key support and resistance level breaks.
Oil slipped in early Asian trade. The market faces risk of a major correction in coming months, TD Securities said.
Oil prices fell by a dollar in early Asian trading on Monday after disappointing Chinese inflation data over the weekend stoked fears about demand.
As Israel-Iran conflict looms, will crude prices surge further? See how global tensions and market sentiment could influence oil futures next week.