Oil prices edged lower on Monday as investor concern about the economic impact from Friday’s deadly attacks in Paris, claimed by Islamic State, and a global glut of crude supplies kept prices in check.
France carried out large-scale air strikes against Islamic State sites in Syria overnight and lingering fear after Friday’s attacks increased uncertainty over the outlook for the euro zone economy.
“Friday’s dreadful events and their aftershocks all threaten economic growth; hence the market is coming lower,” PVM Oil Associates analyst Tamas Varga said.
Front-month Brent crude prices were down 91 cents at $43.56 a barrel at 10:38 a.m. EDT (1538 GMT). U.S. crude futures traded down 54 cents at $40.20 a barrel, having touched a session low of $40.16.
Oil prices last week racked up their biggest weekly losses in eight months, pressured by swelling storage of crude on both land and sea.
