Oil futures extended losses on Monday in a volatile session as recession fears among the top oil consumers, the United States, offset supply concerns from rising tensions in the Middle East.
Stocks fell across Asia as U.S. recession concerns steered investors away from riskier assets.
Brent crude futures fell 78 cents, or 1%, to $76.03 a barrel by 0652 GMT, while WTI crude futures fell 87 cents, or 1.2%, to $72.65 a barrel.
Brent and WTI fell more than 3% on Friday, both contracts posting their fourth consecutive week of losses.
U.S. recession fears stemming from a weak July payrolls report on Friday added to lingering concerns about Chinese demand in the oil market. Falling diesel consumption in China, the world’s biggest contributor to oil demand, is weighing on oil prices.
Oil has also come under pressure after OPEC+ stuck to its plan to phase out voluntary output cuts from October, analysts say, meaning supplies will rise later this year.
A survey on Friday showed OPEC oil production rose in July despite the group’s output cuts.
Geopolitical risks in the Middle East are limiting oil losses. Fighting in Gaza resumed on Sunday after a series of talks in Cairo fell apart.
Israel and the United States are bracing for a major escalation in the region after Iran and its allies Hamas and Hezbollah vowed to retaliate against Israel last week for the killing of Hamas leader Ismail Haniyeh and top military commander of the Lebanese armed group Hezbollah, Fuad Shukr.
Investors are watching falling U.S. services data in June to gauge the health of the world’s largest economy.
