Brent crude futures traded around $74.7 a barrel on Monday, extending losses from Friday, amid signs of more supply entering the market as US production continues to slowly recover from the damage caused by Hurricane Ida in August.
As of Friday, about 23% of US Gulf of Mexico crude production remained offline. Meanwhile, the spread of the Delta variant and worries over the impact it will have on the economic recovery lingered.
In Asia, a city in southeast China hit by the COVID-19 outbreak told residents on Saturday to stay home and closed various venues, as infections spread during a key holiday travel season.
Last week, however, Brent climbed nearly 3, due to supply disruptions and as data from both the EIA and API showed a decline in crude stocks.
Elsewhere, the IES said last week that an acceleration in vaccine roll-outs globally will continue to support oil prices, increasing global oil demand growth forecast for 2022 by 85,000 bpd to 3.2 million bpd.
Brent Crude oil is a major benchmark price for purchases of oil worldwide. While Brent Crude oil is sourced from the North Sea the oil production coming from Europe, Africa and the Middle East flowing West tends to be priced relative to this oil.