SINGAPORE: (News Desk) – International oil prices fell during Asian trading on Monday after a strong rally last week, while Asian stock markets mostly declined amid renewed concerns over heavy investment in artificial intelligence and rising inflation.
West Texas Intermediate (WTI) crude futures slipped below $99 a barrel during early trading, down more than 0.8%, while Brent crude futures also fell nearly 1%, briefly losing the $109-per-barrel threshold.
By around 0230 GMT, WTI was trading at $100.62 a barrel, down 0.8%, while Brent crude stood at $107.89, down 1.8%.
The decline followed substantial gains last week. November WTI crude futures settled at $101.41 a barrel on Friday, gaining $3.44, or 3.5%. Brent crude rose $3.94, or 3.7%, to close at $109.86. For the week, WTI gained 10.4%, while Brent advanced 4.9%.
Despite Monday’s pullback, oil prices remained elevated amid concerns over Middle Eastern supplies. Market participants continued to monitor developments involving Iran and the Strait of Hormuz, as well as reported attacks by Yemen’s Houthi movement on key Saudi Arabian oil facilities.
Meanwhile, Asian equity markets came under pressure following a technology-led sell-off on Wall Street. Investors remained concerned about rising costs, inflation and whether the enormous investments in artificial intelligence infrastructure would generate sufficient returns.
The Nasdaq Composite fell more than 2% in the previous US session, with major technology companies including Microsoft, Nvidia, Advanced Micro Devices and Amazon among those weighing on the market.
National Australia Bank’s Rodrigo Catril said the sell-off reflected growing doubts about the financial returns underpinning the AI investment boom rather than simply concerns about demand.
Investors have also been monitoring CoreWeave, a cloud computing company heavily exposed to AI infrastructure. Its shares have fallen around 30% this month, according to the supplied report, while rising yields on some of its bonds have heightened concerns about its debt burden.
Optimism following reassuring comments from Nvidia chief executive Jensen Huang about CoreWeave’s financial position faded as trading began in Asia on Monday.
Market attention is also turning to the US Federal Reserve’s next interest-rate decision. Expectations of another rate increase have risen following stronger-than-expected US inflation data. Higher borrowing costs could weigh on technology companies that rely on financing to support large-scale investments.
In Asia, Tokyo’s Nikkei 225 declined 1.2% to 64,534.03, while South Korea’s Kospi fell 0.2% to 5,656.47. Shanghai’s Composite Index dropped 0.4% to 3,702.32. Markets in Sydney, Singapore, Taipei and Wellington also recorded losses, while Hong Kong remained closed for a holiday.
China’s economy grew 4.5% in the third quarter, slightly exceeding expectations in an AFP survey, but the figures did little to lift sentiment across regional markets.
Elsewhere, the euro slipped to $1.1227 from $1.1236 on Friday, while the pound edged up to $1.3330. The dollar traded at 158.03 yen, compared with 157.99 yen previously.
In Europe, London’s FTSE 100 closed 0.4% higher at 10,881.90, while the Dow Jones Industrial Average ended the previous US session down 0.3% at 52,002.41.
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