Oil prices decline over $1 on demand concerns

Oil prices eased more than $1 on Monday as disappointing eurozone business activity added to worries about weak demand.

Brent crude futures for November were down $1.36, or 1.8%, to $73.13 a barrel by 1627 GMT. US crude futures for November fell $1.50, or 2%, to $69.50.

Euro zone business activity contracted sharply and unexpectedly this month as the bloc's dominant services industry flatlined while a downturn in manufacturing accelerated.

US business activity was steady in September, but average prices charged for goods and services rose at the fastest pace in six months, potentially hinting at a pickup in inflation in the coming months.

"Disappointing economic numbers flowing from China along with a surprise slowdown in European manufacturing is placing crude demand at the lowest levels so far this year," said Dennis Kissler, senior vice president of trading at BOK Financial. Supply concerns stemming from Israel's airstrikes on Lebanon on Monday helped support oil prices.

After almost a year of war in Gaza, Israel is shifting its focus to its northern border.