Oil prices settle lower amid profit-taking

Oil drilling rigs

Oil prices declined on Monday as investors took profits to capitalize on weekly gains, after both crude contracts ended last week a two-week losing streak.

Brent crude futures for February 2025 delivery dropped 0.8%, or $0.58, to settle Monday at $73.91 a barrel. Similarly, futures prices for US West Texas Intermediate (WTI) crude for January 2025 delivery lost 0.8%, or $0.58, to $70.71.

Monday's losses were also driven by a slowdown in China's retail sales, which rose by 3.3% in November compared to 4.8% in October, falling short of analysts' expectations of a 4.6% growth. This renewed concerns about weak demand in China.

This coincides with expectations of weak trading volumes in stock markets over the coming period, as January typically sees the lowest level of gasoline demand in the US, according to MarketWatch.