By Adedapo Adesanya
Oil futures recorded losses on Monday to settle at a nearly two weeks low as investors failed to shake worries that growing signs of economic weakness will eventually hurt demand for crude oil.
Brent crude futures settled down 33 cents equivalent to 0.56 percent to $59.05 per barrel while the US West Texas Intermediate (WTI) crude futures dropped 20 cents or 0.37 percent to trade lower at $53.67 per barrel.
Oil marketers have been looking at evidence that some of the biggest economies in the world are weakening as led by China as its National Bureau of Statistics released data released last Friday showed slower-than-expected growth from the second-largest economy. Gross domestic product (GDP) expanded at a 6 percent in the third quarter, the country’s slowest in 27 years.
Also, affecting crude prices were comments from the US commerce secretary who said an initial trade deal does not need to be finalized next month which brought about doubts that a US-China trade deal would be reached soon.
This is feeding worries that a slowing global economy would reduce demand for oil.
On his part, President Donald Trump has said he would like to sign a deal when he meets the Chinese leader at the Asia-Pacific Economic Cooperation (APEC) summit in November.
Adding to tensions, China is also seeking $2.4 billion in retaliatory sanctions against the United States for non-compliance with a World Trade Organisation (WTO) ruling in a tariffs case dating back to the era of President Barack Obama.
Already, some major producers are not obeying the production agreements set on them by the Organisation of Petroleum Exporting Countries (OPEC) and this weighed on sentiments affecting oil prices despite agreement to cut supply by 1.2 million barrels per day from the start of this year.
Offering some encouragement, European shares opened slightly higher on Monday as investors remained hopeful Britain would avoid a disorderly exit from the European Union.
Analysts have said any British-European Union agreement that avoids a no-deal Brexit should boost economic growth and oil demand.
Dipo Olowookere