Oil prices ease, supply cuts keep Brent above $90 per barrel

Brent crude oil price news: Oil prices eased in early Asian trade on Monday as economic concerns in China weighed on fuel demand outlook although Brent stayed perched above $90 a barrel, supported by tightening supplies after Saudi Arabia and Russia extended supply cuts. Brent crude fell 49 cents, or 0.5 per cent, to $90.16 a barrel by 0022 GMT while U.S. West Texas Intermediate crude was at $86.77 a barrel, down 74 cents, or 0.9 per cent.

"Concerns about Chinese economic growth weighed on sentiment across commodities," ANZ analysts said in a note. "The move was exacerbated by a stronger USD, which kept investor appetite low," they added, referring to the greenback which has risen for eight straight weeks. Both contracts gained in the past two consecutive weeks with Brent settling at its highest since November on Friday, after Saudi Arabia and Russia announced last week they will extend voluntary supply cuts of a combined 1.3 million barrels per day until the end of the year.

"The move was exacerbated by a stronger USD, which kept investor appetite low," they added, referring to the greenback which has risen for eight straight weeks. Both contracts gained in the past two consecutive weeks with Brent settling at its highest since November on Friday, after Saudi Arabia and Russia announced last week they will extend voluntary supply cuts of a combined 1.3 million barrels per day until the end of the year.

WTI is likely in the process of marking out a new higher range at above $83 and below resistance at $93.50 in the weeks ahead, with concerns around demand in China and Europe capping further upside, IG analyst Tony Sycamore said in a note.