International benchmark Brent declined in European trade on Monday, sharpening losses for the second straight session and plumbing a two-week trough amid concerns about weak demand in China, the world’s largest fuel consumer.

The losses were stymied by growing geopolitical tensions as all sides fail to reach a ceasefire agreement in the Gaza war, while risks grow of an expanded war between Russia and its neighbors.

Brent Prices

Brent fell 0.6% to $81.38 a barrel, the lowest since February 27, with a session-high at $82.40.

Brent lost 1.65% on Friday, the first loss in three days on profit-taking off four-month highs at $84.30.

Brent also lost 1.8% last week, the second weekly loss in three weeks on concerns about Chinese demand.

Chinese Demand

China is targeting a 5% growth rate this year, which was described by many analysts as ambitious without further financial and monetary stimulus measures.

Recent data showed China’s crude oil imports rose in the first two months of the year compared to a year ago, but were lower than recent months.

Outlook

Nissan Securities’ analysts say that weak demand in China overshadowed the OPEC+ extension to supply cuts.

However, losses are mitigated by persistent geopolitical risks in the Middle East as negotiations to enact a ceasefire in the Gaza region falters.

And finally, eastern European country Moldova recent signed a joint defense agreement with Russia in a move that aims to rebuff the Russian army from a potential incursion.