Investing.com–Oil prices edged lower on Monday as concerns about global growth continued to weigh, even after positive signals from the US government avoiding a shutdown over the weekend and softer US inflation data.
At 08:20 ET (13:20 GMT), the February maturity fell 0.4% to $72.27 per barrel, while yields fell 0.4% to $69.15 per barrel.
British growth is stagnating
Data released earlier Monday showed the British economy failed to grow in the third quarter of the year, raising concerns about future economic activity in the world’s sixth-largest economy.
The Office for National Statistics cut its estimate for the change in gross domestic product output from a previous estimate of 0.1% to 0.0% in the July to September period. The ONS also cut its estimate for second-quarter growth to 0.4% from 0.5% previously.
The focus has largely remained on demand into 2025, especially as oil importer China struggles to achieve significant growth and has signaled plans for more stimulus in the coming year.
Concerns about declining demand and increased supply have driven oil prices down more than 5% so far in 2024.
Positive US signals support oil prices
Oil traders were relieved that the US government avoided a potential shutdown this weekend, when President Joe Biden passed a relief bill authorizing government funding through March.
Fears of a U.S. shutdown were heightened last week after President-elect Donald Trump criticized a bipartisan financing bill for its provisions to Democratic lawmakers and proposed a revised bill that also sought to raise the debt limit. The revised version was rejected by lawmakers.
Markets feared a U.S. shutdown, especially during the holidays, would disrupt travel and hurt fuel demand.
Oil markets were also supported by a softer , as the dollar retreated from its highest level in more than a year after November data – the Federal Reserve’s preferred inflation gauge – came in lower than expected, indicating some price pressures decreased.
But the figures came just days after the Fed announced a slower pace of rate cuts through 2025 – a scenario that could weigh on economic growth and hamper oil demand.
Chinese demand and global supply were the theme for 2025
From 2025 onwards, the focus will be squarely on whether more stimulus measures in China can boost economic growth.
The focus will also be on US policy under newly-elected President Donald Trump, who has taken a more protectionist stance towards China and Iran.
The US could impose more sanctions on Iran’s oil industry, further limiting global supplies.
Recent reports said the US is also considering more sanctions on Russian oil exports.
(Ambar Warrick contributed to this article.)