Oil steeply declined on Monday, as OPEC lowered its demand growth, amid worries about the status of the economy in China.

Brent crude dipped 1.9% to $77.57 per barrel, while WTI slipped l 2% to $74.05 per barrel.

On Monday, the Organization of the Petroleum Exporting Countries revised its global oil demand growth forecast for 2024 downward, marking the third consecutive reduction by the producer group.

The organization also lowered its global demand growth estimate for 2025 to 1.64 million barrels per day, down from the previous figure of 1.74 million barrels per day.

Data from China released over the weekend indicated that consumer inflation unexpectedly slowed in September, while producer inflation has been in decline for almost two years.

The data indicated a persistent deflationary trend in the world’s largest oil importer, which raises concerns about future demand.

In late September, China announced a series of monetary stimulus measures aimed at bolstering the economy. However, excitement over these initiatives quickly faded.

China has become a central concern for oil markets, as the largest oil importer in the world grapples with ongoing deflation and slowing economic growth.

Crude prices were also affected by discussions regarding a possible ceasefire in the Middle East. Concerns about a potential escalation in the conflict had previously contributed to rising crude prices, as traders increased the risk premium on oil.