NEW YORK, April 20 (UPI) -- Weak economic data Monday from the European Union offset concerns about threats to the oil sector in Saudi Arabia, pushing oil prices lower.
The price for Brent crude oil, the global benchmark, fell more than 1 percent from the previous close to trade at $62.71 per barrel early Monday. Brent is up more than 10 percent since the start of April, but still more than $40 per barrel below the June 2014 level.
Crude oil is trading in a bear market because of a steady increase in oil output from key producers Saudi Arabia and the United States. While global demand for oil is increasing, key members of the world economy are still working to regain footing lost during the last recession.
Eurostat, the statistics office for Europe, said Monday production in the construction sector fell 1.2 percent from January to February for the 28 members of the European Union. In January, the same sector grew by 0.6 percent on a seasonally adjusted basis.
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That offset some of the security concerns in the war-torn Middle East. Saudi Arabia, which is leading a pan-Arab military operation against the Houthi rebel movement in Yemen, said it ramped up its security in the face of a possible terrorist attack.
The Saudi Interior Ministry said threats surfaced against state-owned oil company Aramco and retail shopping centers in Riyadh, the nation's capital.
A March 13 statement from the U.S. Embassy in Riyadh said there was information to suggest terrorists or terrorist sympathizers could be plotting against Western oil workers. U.S. citizens working for oil companies in the Eastern province of Saudi Arabia may be the target of violence or kidnapping threats, the embassy warned.
Lower oil prices are hurting production operations in the United States. Oil services company Halliburton said Monday its total revenue for the first quarter was down 4 percent year-on-year.
The price for West Texas Intermediate was down about a half-percent in early Monday trading to fetch $55.36 per barrel. WTI is up about 13 percent for the month.
