LONDON & NEW YORK CITY – Oil prices edged lower on Monday after fresh Saudi and Russian crude output cuts spurred prices to 10-month highs last week.
Saudi Arabia and Russia last week announced that they will extend voluntary supply cuts of a combined 1.3 million barrels per day until the end of the year.
Brent crude fell by 23 cents, or 0.25%, to $90.42 a barrel on Monday while West Texas Intermediate crude lost 46 cents, or 0.53%, to fall to $87.05 per barrel.
The supply cuts overshadowed continuing concern over Chinese economic activity last week, as reported by Reuters, but investors looked to be focusing on demand drivers with the International Energy Agency (IEA) and the Organization of the Petroleum Exporting Countries (OPEC) due to release monthly reports this week.
The IEA last month lowered its 2024 forecast for oil demand growth to 1 million barrels per day, citing lackluster macroeconomic conditions. OPEC’s August report, meanwhile, kept its 2.25 million barrels per day demand growth forecast unchanged.