Oil prices fell for the fourth day in a row, as it affected the demand outlook, concerns about the US economy, and China's slower-than-expected recovery.
West Texas Intermediate crude futures fell below $70 a barrel after a fourth weekly loss, the longest streak of declines since September.
Talks continue to avert a US default on the debt ceiling, with Treasury Secretary Janet Yellen warning that the department could run out of money as soon as June 1st.
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Despite pledged supply cuts by the OPEC+ alliance, demand for physical barrels also appears weak, while refinery margins (the profits refiners reap from processing crude oil into petroleum products like diesel and gasoline) remain low.
Hedge funds and money managers have taken the largest short positions on global benchmark Brent crude since July 2021, although speculators are less inclined to bet on a decline in US crude.
Investors will be watching key economic data out of China this week for clues to the pace of the country's recovery, as well as a monthly report from the International Energy Agency on Tuesday.
“Sentiment in the oil market remains negative with an uncertain demand outlook and concerns about the US debt ceiling,” said Warren Patterson, head of commodity strategy at ING Group. He added: The market is likely to look for any potential demand revisions in the International Energy Agency's monthly market report.
