LONDON: Oil prices fell on Monday, ending five days of gains, as investors looked to slowing economic activity in China, the world's biggest crude importer, which revived concerns about a global recession and falling global fuel demand.
Brent crude futures for December settlement fell by as much as 1.1% and was down 40 cents, or 0.4%, at $97.52 a barrel by 1240 GMT.
West Texas Intermediate crude for November delivery declined by as much as 1.1% and was last at $92.29, down 35 cents, or 0.4%.
Services activity in China during September contracted for the first time in four months as Covid-19 restrictions hit demand and business confidence, data showed on Saturday.
The slowdown in China, the world's second-largest oil consumer behind the United States, adds to growing concerns over a possible global recession triggered by numerous central banks raising interest rates to combat high inflation.
"Oil is getting hit with the triple whammy of China's economic weakness, US monetary policy tightening and Biden administration SPR intervention," Stephen Innes, managing director at SPI Asset Management, said in a note.
Innes was referring to the possibility of additional releases from the US Strategic Petroleum Reserve (SPR) next month in response to the decision last week by the Organization of the Petroleum Exporting Countries and allies including Russia, together known as Opec+, to lower their output target by 2 million barrels per day. — Reuters
Oman Observer is now on the WhatsApp channel. Click here
