Oil Prices Slip as US Recession Fears Offset Supply Worries

Oil prices slid on Monday, weighed down by recession fears in the US and a stock market selloff. However, concerns about supply losses in Libya and the potential for further conflict in the Middle East limited the decline.

Brent crude futures fell 0.86% to $76.15 per barrel, while US West Texas Intermediate (WTI) crude dropped 1.14% to $72.68 per barrel. The price decline was largely linked to the weak July jobs report and subsequent interest rate cut expectations in the US.

The Libyan oil field of Sharara has been partially shut down due to protests, further reducing global supplies. In addition, tensions in the Middle East are escalating, with fighting in Gaza continuing despite a failed round of ceasefire talks in Cairo.