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Crude oil prices edged lower at the start of the week, weighed down by escalating concerns over economic fragility in China and a sharp contraction in eurozone business activity. 

Brent crude settled at $73.90/barrel, down $0.59.

WTI fell by $0.63 to close at $70.37/barrel.

The eurozone's economic outlook worsened unexpectedly this month, as business activity contracted significantly. The services sector stagnated, and the downturn in manufacturing deepened, casting doubt on the region's near-term recovery. Meanwhile, China faces increasing economic strain, grappling with deflationary pressures and ineffective stimulus measures aimed at reviving domestic consumption and growth.

Despite these economic headwinds, the decline in oil prices was mitigated by persistent geopolitical tensions in the Middle East, which continue to threaten supply from one of the world’s most crucial oil-producing regions.

Written by: Muhammad Hafiz

Edited by: Rochelle Nguyen