Oil Prices Decline Amid China Demand Concerns

Oil prices dropped on Monday as concerns over weakening demand from China weighed on market sentiment, with Brent crude falling to $79.55 per barrel and WTI dropping to $76.52. Recent reports indicated a slowdown in China's economy, including falling home prices and rising unemployment, which led to reduced crude processing by refineries. The decline in prices was also influenced by ongoing ceasefire talks between Israel and Hamas, as there appears to be a 'genuine desire' for an agreement, potentially easing supply concerns. However, skepticism remains regarding the success of these negotiations, with Hamas accusing Israel of undermining U.S. efforts. Additionally, uncertainty regarding U.S. Federal Reserve interest rate cuts continues to impact market dynamics. Overall, expectations for a cumulative 100 basis point cut by the end of the year persist despite fluctuating demand forecasts.