Oil edged higher but remained close to its lowest in almost seven weeks amid concerns about excess supply and weak Chinese demand.

Global benchmark Brent inched up, after earlier dipping to its lowest level since the start of October, though it continued to trade below $72 a barrel following its tumble last week. 

A slower than usual selling pace for Angolan crude was the latest signal of weak Chinese demand, and the International Energy Agency has warned that global oil markets face a sizeable surplus next year.

Oil has swung between gains and losses in recent weeks, with hostilities in the Middle East at times raising fears of an escalation and potential disruptions to supply. A stronger greenback has meanwhile also pressured prices lower, with the Bloomberg Dollar Spot Index rallying to its highest level in almost two years last week.

"Crude prices continued to be weighed down by China demand concerns and ample global supply into 2025, after both OPEC and the IEA lowered their demand forecasts," Saxo Bank A/S said in a note. 

In another indication of softer demand, the two nearest futures for West Texas Intermediate crude were just a few cents away from flipping for the first time since February into a bearish contango structure — where front-month contracts are cheaper than those further along. The so-called prompt spread traded at a premium as narrow as 2 cents earlier on Monday.

Brent for January settlement was 0.5% higher at $71.43 a barrel as of 11:43 a.m. in London.

WTI for December delivery rose 0.4% to $67.29.

Source : Bloomberg