2023.01.3009:13:00UTC+00Oil Prices Ease On Demand Concerns

Oil prices fell on Monday to trade at over one-week low amid concerns about economic growth and the outlook for oil demand.

Benchmark Brent crude futures dropped 0.3 percent to $86.11 a barrel, while WTI crude futures were down half a percent at $79.31.

The downside remained capped by a drone attack in Iran and China's pledge to promote consumption.

A drone strike on an Iranian defense facility over the weekend suggested a possible escalation in Middle East tension. The attack attributed to Israel by a U.S. official could disrupt global crude supplies.

Travel in China had recovered sharply during the week-long Lunar New Year holiday, raising optimism about demand recovery.

The number of severe COVID cases and deaths is trending downward, the Center for Disease Control and Prevention (CDC) said in a report.

Additionally, the Chinese government vowed to support local economic growth.

Focus this week is also on a meeting of the Organization of Petroleum Exporting Countries and its allies (OPEC+), though the group is largely expected to maintain production at current levels.