Brent crude dropped 9 cents, or 0.1%, to $78.47 a barrel after settling down 54 cents on Friday

Oil prices struggled to push ahead on Monday as economic headwinds pressured the international oil demand outlook and offset geopolitical concerns in the Middle East and an attack on a Russian fuel export terminal over the weekend.

Brent crude dropped 9 cents, or 0.1%, to $78.47 a barrel by 0353 GMT after settling down 54 cents on Friday.

The front-month U.S. West Texas Intermediate (WTI) crude futures, for February delivery, rose 11 cents to $73.52 a barrel with the contract set to expire later on Monday. The more active March West Texas Intermediate contract was at $73.21 a barrel, down 4 cents.

This morning’s subdued re-open speaks volumes about current sentiment in the crude oil market in spite of ongoing geopolitical tensions in Europe and the Middle East, IG analyst Tony Sycamore said.

Prices barely moved in spite of an alleged Ukrainian drone attack at a huge Russian fuel export terminal. Russian producer Novatek said on Sunday it had been compelled to suspend some operations at the Baltic Sea terminal because of a fire.

In the absence of any major escalation, crude is set for rangebound trading, with some downward pressure, said Vandana Hari, founder of oil market analysis provider Vanda Insights.

In the Middle East the attacks in the Red Sea and the Gulf of Aden have disrupted global trade. It has also tightened European and African crude markets and pushed the premium of the first-month Brent contract to the six-month contract to $1.99 on Friday, the highest since November. This structure, called backwardation, suggests a perception of tighter supply for prompt delivery.

Sycamore said oil fundamentals remain a headwind for prices.

Oil production is higher and the growth outlook in China and Europe is mixed at best, while Gross Domestic Product data this week is expected to show the velocity of the U.S. economy has slowed considerably, he said.