A global financial market rout has pressured oil to fresh seven-month lows, with traders weighing continued signs of global economic slowdown. 

Brent futures settled above $76 a barrel, the lowest level since January. Traders fled risk assets as a stock market meltdown worsened on Monday. The declines come as traders fret about the health of the global economy, though US equity markets moved away from their lows as the trading session progressed.

Still, the selloff may have run its course as technical signals including the relative strength index show prices are at oversold levels. 

Countering the flight from risk assets was a production stoppage at Libya’s largest oil field. Libya’s largest oil field fully halted production as the country’s internationally recognized government alleged “political blackmail.” 

Oil has notched four weeks of declines on signals of faltering demand in the US and China, with the Asian nation rolling out plans to spur domestic consumption over the weekend. OPEC+ supply cuts and concerns that the conflict in the Middle East could impact production from the region had supported prices as traders brace for a possible attack from Iran and regional allies against Israel.

Saudi Arabia raised the price of its flagship crude to Asia for the first time in three months, a tentative sign that the kingdom remains confident about demand in the region. It made significant cuts for Europe and the US, with prices for the former slashed by the most since the pandemic. 

  - Bloomberg