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Investing.com-- Oil prices retreated in Asian trade on Monday, extending losses from last week amid persistent concerns over sluggish demand and a looming supply glut in the coming months.
Prices took limited support from resurgent hostilities between Israel and Hamas over the weekend, although Jerusalem said that a U.S.-brokered ceasefire still remained.
Focus was also on U.S. attempts to broker a ceasefire between Russia and Ukraine, as well as resurgent trade tensions between Washington and Beijing.
Brent oil futures for December fell 0.3% to $61.11 a barrel, while West Texas Intermediate crude futures fell 0.4% to $57.33 a barrel by 20:40 ET (00:40 GMT). Both contracts fell over 2% last week and were close to five-month lows.
Israel-Hamas ceasefire seen holding after weekend attacks
Israel said on Sunday that a ceasefire with Palestinian group Hamas in Gaza had resumed after the two attacked each other over the weekend. Two Israeli soldiers were reportedly killed by Hamas, sparking a wave of strikes from Israel that killed nearly 30 people.
Israel said aid to the enclave will also resume from Monday.
The weekend strikes were the first major test faced by a U.S.-brokered ceasefire between Israel and Hamas, which the two had agreed to earlier in October.
The ceasefire had initially battered oil prices, as markets priced in a smaller risk premium for oil.
Demand, oversupply concerns weigh on oil
Oil prices slid to five-month lows last week amid heightened concerns over weakening global demand and rising supplies.
Concerns over slowing demand were furthered by a bearish monthly report from the International Energy Agency, while weak economic prints from top importer China also weighed. Chinese gross domestic product data for the third quarter is due later on Monday.
In the U.S., an ongoing government shutdown delayed the release of several key economic prints, and also presented headwinds for local fuel demand.
On the supply front, markets braced for a potential glut amid steady production increases by the Organization of Petroleum Exporting and allies (OPEC+). The IEA warned that the OPEC+ hikes were likely to spur a supply overhang in 2026.
Heightened U.S.-China trade tensions had also pressured oil prices in recent weeks, although conciliatory comments from U.S. officials offered some support last week.