Oil prices dropped on Friday amid growing concerns about an economic slowdown in key markets, China's slowing demand and the potential for increased OPEC+ supply.
International benchmark Brent crude fell by 0.45% to $74.54 per barrel at 10.59 a.m. local time (0759 GMT), down from the previous session's close of $74.88.
US benchmark West Texas Intermediate (WTI) dropped 0.45% to $70.84 per barrel after closing at $71.16 in the prior session.
Both benchmarks experienced a price decline, largely influenced by signs of economic slowdown among major oil consumers.
Market players are focused on cues about slowing demand in China, the world's largest crude oil importer, coupled with expectations that the OPEC+ group will boost supply.
In China, the world's second-biggest oil consumer, ongoing economic concerns are dampening prices by undermining the demand outlook. Experts indicated that a cautious sentiment persists in Chinese markets, as lower-than-expected import data from the region's key importer and exporter heightens fears of potential economic stagnation.
China's oil imports experienced their first annual decline since 2000, primarily due to a slowdown in domestic demand and a surge in electric vehicle sales, which is indicative of a weakening appetite for oil, according to analysts.
Data reflecting challenges in the US economy have also exerted downward pressure on oil prices. Recent figures show that non-farm employment rose by 142,000 in August, yet the manufacturing sector has been in decline for the past seven months.
Despite expectations of declining demand in the global market, ongoing concerns about major producers ramping up supply continue to impact prices.
The Organization of Petroleum Exporting Countries (OPEC) and its allies, known as the OPEC+, previously agreed to extend oil production cuts to November as crude oil and fuel prices continued to fall.
By Handan Kazanci
Anadolu Agency
energy@aa.com.tr