Oil prices fell by more than 1% on Monday on sharp price cuts by top exporter Saudi Arabia and a rise in OPEC output, offsetting worries about escalating geopolitical tension in the Middle East.
Brent crude slipped 1.09%, or 86 cents, to $77.90 a barrel by 0344 GMT, while U.S. West Texas Intermediate crude futures shed 1.15%, or 85 cents, to $72.96 a barrel.
“Saudi Aramco slashing its February OSPs bolsters the weak demand narrative,” said Vandana Hari, founder of oil market analysis provider Vanda Insights.