Oil prices extended their losses on Monday due to expectations of an increase in OPEC+ production starting in October, coupled with signs of weakening demand in China and the United States, the world's largest oil consumers, raising concerns about future consumption growth.

• Brent crude futures fell by 56 cents, or 0.7%, to $76.37 per barrel, while U.S. West Texas Intermediate (WTI) crude dropped by 45 cents, or 0.6%, to $73.10 per barrel.

• The losses followed a 0.3% decline in Brent last week and a 1.7% drop in WTI.

• OPEC+ may proceed with the planned oil production increase starting in October. Eight OPEC+ members are set to increase production by 180,000 barrels per day in October as part of a plan to begin unwinding the latest tranche of production cuts amounting to 2.2 million barrels per day while maintaining other cuts until the end of 2025.

• Both Brent and WTI have posted losses for two consecutive months as U.S. and Chinese demand concerns have outweighed recent disruptions in Libyan oil supplies amid a dispute between government factions there and tensions in the key oil-producing region of the Middle East.

• Further pessimism about Chinese demand growth emerged after an official survey on Saturday showed that industrial activity there had dropped to a six-month low in August as industrial product prices fell and factory owners struggled for orders. However, a private survey on Monday covering smaller export-oriented companies showed signs of a tentative recovery in August.

• The weaker-than-expected Chinese PMI released over the weekend heightens concerns that the Chinese economy will fail to meet its growth targets.

• In the United States, oil consumption slowed in June to its lowest seasonal levels since the COVID-19 pandemic in 2020, according to data from the Energy Information Administration released on Friday.

• A decline in growth in 2025 appears on the horizon, driven by economic headwinds in China and the United States. OPEC will have no choice but to delay the phase-out of voluntary production cuts if it wants higher prices.

• The number of operating oil rigs in the United States remained steady at 483 last week, according to the weekly Baker Hughes report.

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