Oil prices retreated Monday, extending losses from last week amid persistent concerns over sluggish demand after tepid Chinese economic growth.
At 05:00 ET, Brent oil futures for December fell 0.4% to $61.07 a barrel, and West Texas Intermediate crude futures dropped 0.4% to $56.94 a barrel.
Both contracts fell over 2% last week and were close to five-month lows.
Chinese growth slows
Oil prices slid to five-month lows last week amid heightened concerns over weakening global demand and rising supplies, especially after a bearish monthly report from the International Energy Agency.
Not helping overall sentiment was the news that China’s economic growth slowed to the weakest pace in a year in the third quarter, data showed earlier Monday, growing by just 4.8%.
The economy’s overreliance on exports at a time of mounting trade tensions with Washington is also raising questions over whether Beijing has the resolve to tackle critical policy challenges to foster longer term sustainable growth.
On the supply front, markets braced for a potential glut amid steady production increases by the Organization of Petroleum Exporting and allies (OPEC+). The IEA warned that the OPEC+ hikes were likely to spur a supply overhang in 2026.
Heightened U.S.-China trade tensions had also pressured oil prices in recent weeks, although conciliatory comments from U.S. officials offered some support last week.
Israel-Hamas ceasefire seen holding
Crude prices have also weakened after Israel said on Sunday that a ceasefire with Palestinian group Hamas in Gaza had resumed after the two forces attacked each other over the weekend.
Israel said aid to the enclave will also resume from Monday.
The weekend strikes were the first major test faced by a U.S.-brokered ceasefire between Israel and Hamas, which the two had agreed to earlier in October.
The ceasefire had initially hit oil prices, as markets priced in less of a risk premium.
Doubts over India buying Russian oil
Elsewhere, U.S. President Donald Trump reiterated on Sunday that Indian Prime Minister Narendra Modi told him India will stop buying Russian oil.
"I spoke with Prime Minister Modi of India, and he said he’s not going to be doing the Russian oil thing," Trump told reporters aboard Air Force One.
Asked about India’s assertion that it was not aware of any conversation between Modi and Trump, Trump replied: "But if they want to say that, then they’ll just continue to pay massive tariffs, and they don’t want to do that."
India has become the biggest buyer of seaborne Russian oil sold at a discount after Western nations shunned purchases and imposed sanctions on Moscow for its 2022 invasion of Ukraine.