Crude oil futures ended deeply in red on Monday as concerns about the outlook for demand from China outweighed the ongoing geopolitical tensions due to the Middle East crisis. A firmer dollar weighed as well on oil prices. Fears of supply disruptions intensified following a drone attack on U.S. forces in Jordan over the weekend by Iran-backed militants, according to the U.S. President Joe Biden. Iran has denied involvement in the drone attack that killed three U.S. troops and left dozens injured. The drone attack raised concerns of a more direct confrontation between the two countries, potentially resulting in regional energy supply disruptions in the oil-rich Middle East.
Benchmark crude oil futures for March delivery fell $1.23 or 1.6% to settle at $76.88 a barrel on the New York Mercantile Exchange. Brent crude for March delivery dropped $1.15 or 1.4% to $82.40 per barrel on London's Intercontinental Exchange.