Oil prices down with demand concern in China, Middle East cease-fire talks

By Zeynep Beyza Kilic

Oil prices declined on Monday with concerns of weaker demand in China, the world's largest oil importer, and ongoing cease-fire talks in the Middle East.

International benchmark Brent crude fell 0.4% to $79,34 per barrel at 10.31 a.m. local time (0731 GMT), down from the previous session's close of $79,68. US benchmark West Texas Intermediate (WTI) decreased 0.5% to $75,20 per barrel, after closing at $75,54 in the prior session.

Lower economic growth expectations for China triggered worry over a drop in demand in the country.

Data from China last week showed that new home prices fell at the fastest rate in nine years, industrial production slowed and the economy lost momentum in July as unemployment rose.

According to data, industrial production remained below expectations with an annual increase of 5.1% and unemployment rate was above expectations with 5.2%.

The possibility of a cease-fire in the Middle East, where the majority of global oil reserves are located, also aided the fall in oil prices, easing supply concerns in the markets.

For months, the US, Qatar, and Egypt have been trying to reach an agreement between Israel and Hamas to ensure a prisoner exchange and cease-fire and allow humanitarian aid to enter Gaza.

US Secretary of State Antony Blinken arrived in Israel on Sunday evening to advance efforts to reach a Gaza cease-fire and prisoner swap deal with Hamas.

US President Joe Biden said Sunday he believes that a cease-fire in the Gaza Strip is "still possible." The talks are "still underway. We're not giving up. (It’s) still possible," Biden told reporters.

While, cease-fire talks in the Qatari capital, Doha, concluded on Friday without a breakthrough, but the US presented a fresh proposal that "builds on areas of agreement" and bridges remaining gaps in a manner that allows for "a swift implementation of the deal."