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Erasing earlier gains, Brent crude futures were down 51 cents,
or 0.5%, at $94.41 a barrel by 0816 GMT. U.S. West Texas
Intermediate crude was at $88.58 a barrel, down 43 cents, or
0.5%.
Front-month Brent prices last week hit the lowest since
February, tumbling 13.7% and posting their largest weekly drop
since April 2020, while WTI lost 9.7%, as concerns about a
recession hitting oil demand weighed on prices.
"Last week’s price action left no doubt that recession-driven
demand concerns have the upper hand over supply fears. One could
even go as far as saying the war premium has evaporated," PVM
analyst Stephen Brennock said.
Both contracts recouped some losses on Friday after jobs growth
in the United States, the world's top oil consumer, unexpectedly
accelerated in July.
On Sunday, China also surprised markets with
faster-than-expected growth in exports.
China, the world's top crude importer, brought in 8.79 million
barrels per day (bpd) of crude in July, up from a four-year low
in June, but still 9.5% less than a year earlier, customs data
showed.
In Europe, Russian crude and oil products exports continued to
flow ahead of an impending embargo from the European Union that
will take effect on Dec. 5.
Last week, the Bank of England warned of a protracted recession
in Britain.
Gasoline demand in the United States continues to weaken despite
falling prices at the pump, and stockpiles are rising. [EIA/S]
In terms of U.S. production, energy firms last week cut the
number of oil rigs by the most since September in the first drop
in 10 weeks. [RIG/U]
The U.S. clean energy sector received a boost after the Senate
on Sunday passed a sweeping $430 billion bill.
(Additional reporting by Florence TanEditing by Mark Potter)
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