By Adedapo Adesanya
Brent crude slid by 23 cents or 0.3 per cent to $82.40 per barrel on Monday, its lowest level in over a month, as investors looked past US President Joe Biden’s decision to end his reelection bid and focused on rising stockpiles and signs of weak demand.
Equally, the US West Texas Intermediate (WTI) crude futures fell by 35 cents to $79.78 a barrel, a level it last touched earlier in June.
President Biden ended his campaign on Sunday and endorsed Vice President Kamala Harris as the Democrat Party ticket holder who should face Republican Donald Trump in the November election.
His mental acuity has been a source of worry for top political heavyweights and backers, especially after he fumbled at a live debate against Mr Trump earlier this month.
With his decision to step down not having much on the market, traders decided to stride while shrugging off escalating tensions in the Middle East.
Market players were concentrating on a negative technical picture, abundant stocks, and lacklustre demand.
Energy policy will likely be a core debating point between Harris and Trump, but Citi analysts believe neither will promote policies that have an extreme effect on oil and gas operations as core positions.
In the Middle East, Israeli fighter planes attacked Houthi military sites in Yemen’s Hodeidah port on Saturday, killing at least six people.
The Houthis assured the media on Sunday that they would continue to assault Israel without regard for any rules of engagement.
Israel also pushed tanks back into Gaza’s Khan Younis neighbourhood, and at least 70 Palestinians were killed by Israeli fire, Reuters reported on Monday.
China, the world’s top oil importer, surprised markets by lowering a key short-term policy interest rate and benchmark lending rates to boost its economy, but the move failed to support oil prices.
The nation is on the brink of deflation and is confronted with a protracted property crisis, escalating debt, and sluggish consumer and business sentiment. Also, trade tensions are escalating as global leaders have become more apprehensive about China’s export dominance.
The US Federal Reserve will hold a policy meeting on July 30-31, with investors expecting it to keep rates steady, though there have been signs of a possible cut in September.