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Saudi Arabia and Russia last week announced that they will
extend voluntary supply cuts of a combined 1.3 million barrels
per day (bpd) until the end of the year.
Brent crude fell by 23 cents, or 0.25%, to $90.42 a barrel by
1051 GMT on Monday while U.S. West Texas Intermediate crude lost
46 cents, or 0.53%, to $87.05.
The supply cuts overshadowed continuing concern over Chinese
economic activity last week, but investors looked to be focusing
on demand drivers on Monday, 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 bpd, citing lacklustre macroeconomic
conditions. OPEC's August report, meanwhile, kept its 2.25
million bpd demand growth forecast unchanged.
Among economic factors in the spotlight, the European Central
Bank (ECB) is due to announce its monthly interest rate decision
this week.
The euro zone is forecast to grow more slowly than previously
expected in 2023 and 2024, the European Commission said on
Monday, held back by a sluggish German economy. It is now
projecting GDP growth of 0.8% this year for the zone's five
largest economies, down from the 1.1% forecast in May.
In the United States, meanwhile, August consumer price index
(CPI) data is due on Wednesday and could provide a steer on
whether more increases to interest rates will be on the cards.
"The key economic number for the US this week will be US
inflation data, which is likely to influence everything from
stocks to forex to fixed income and commodity prices," said
Naeem Aslam of Zaye Capital Markets.
(Reporting by Robert Harvey, Natalie Grover, Florence Tan and
Emily ChowEditing by David Goodman)
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