Global oil prices faced challenges on Monday due to economic uncertainties impacting the worldwide oil demand outlook, despite geopolitical tensions in the Middle East and an assault on a Russian fuel export terminal.
Brent crude dipped 0.1% to $78.47 a barrel, while U.S. West Texas Intermediate for February delivery increased slightly to $73.52 a barrel.
Analyst Tony Sycamore noted the subdued market sentiment despite ongoing geopolitical issues. Even an alleged Ukrainian drone attack on a Russian terminal didn’t significantly affect prices, indicating the likelihood of rangebound crude trading.
Meanwhile, disruptions in the Middle East have tightened crude markets, but Sycamore emphasized prevailing headwinds, including increased oil production and mixed growth outlooks in China and Europe. Additionally, the U.S. rig count fell to 497, the lowest since mid-November.
