Crude oil falls on doubts over Russian output curbs

Oil prices fell in Asian trade on Monday, wiping out some of the gains of the previous session amid worries lower growth targets in China could cut oil demand and ongoing concern over Russia’s compliance with a global deal to cut oil output.

But worries over escalating violence in the Middle East put a floor under prices.

Brent crude futures dropped 0.8 percent to $ 55.43 a barrel as of 3: 49 pm Beijing time after settling 1.5 percent higher in the previous session.

US West Texas Intermediate ( WTI) crude futures fell 0.6 percent to $ 53.03 a barrel after closing the previous session up 1.4 percent.

“The main drag affecting markets today is the lowering of growth targets by China and tighter regulatory controls which implies less demand for oil and commodities in general,” said Jeffrey Halley, senior market strategist at Oanda brokerage in Singapore.

Meanwhile, figures by Russia’s energy ministry released last week showed February oil output was unchanged from January at 11.11 million barrels per day, casting doubt on Russia’s moves to rein in output as part of a pact with oil producers in 2016.

Crude oil prices were also supported by news of increasing supply disruptions in the Middle East, ANZ said in a note on Monday.

That followed new doubts over Libya’s attempts to revive its oil production after an armed faction entered two major oil ports on Friday, pushing back forces that captured and reopened the terminals in September 2016.