Oil prices ended last week down more than 7% as new data out of China showed slowing economic growth and as investors weighed the ongoing conflict in the Middle East following the death of Hamas leader Yahya Sinwar.
China's economy grew at the slowest pace since early 2023 during the third quarter, as the property sector remains a drag.
Meanwhile, refinery output in China declined for a sixth straight month, while electric vehicle sales there jumped 42% in August - hitting a record high of over 1 million vehicles.
In the U.S., oil and gas producers cut the number of rigs operating for the fourth time in five weeks, energy services firm Baker Hughes said.
The rig count fell by one to 585 and is down 4% this year. Even so, crude production hit a record high in the week to Oct. 11 of 13.5 million barrels per day as operators become more efficient.
Oil production in the Permian basin, the top U.S. oilfield, could get another boost as a new natural gas pipeline relieves bottlenecks that had producers selling their product at a loss, Georgina McCartney reports.
The Matterhorn pipeline began operations last month and can carry up to 2.5 billion cubic feet of gas per day, adding some 14% of new capacity.
Most of the Permian's expected 2025 oil production growth would not be feasible without more natural gas takeaway capacity, said David Seduski, an analyst for Energy Aspects. He forecasts an additional 350,000 bpd of production coming online next year.
Finally, earnings season is underway, with SLB kicking things off on Friday. The oil services giant posted a 13% rise in third-quarter profit but warned of slower revenue growth in the fourth quarter as producers tighten budgets.