Ultimate magazine theme for WordPress.

Oil prices are sliding on concerns about the Chinese economy and higher crude oil production

A gas station attendant prepares to refuel a car in Rome, Italy, 04 January 2012. REUTERS / Max Rossi / File Photo

  • China’s July factory activity is growing the slowest since February 2020
  • July OPEC Oil Production Reaches 15-Month High – Poll
  • The US will not be locked despite the coronavirus surge, says Fauci

SINGAPORE, Aug. 2 (Reuters) – Oil prices fell more than $ 1 on Monday amid concerns over the Chinese economy after a survey found that factory activity growth at the world’s second largest oil consumer has slowed sharply, with the Concerns about an increase in oil production were heightened by OPEC producers.

Brent crude oil futures fell $ 1.12, or 1.5%, to $ 74.29 a barrel by 0156 GMT, while U.S. crude oil futures West Texas Intermediate (WTI) fell 97 cents, or 1.3%, to 72.98 USD per barrel fell after falling to a session low of USD 72.87.

“China led the way in Asia’s economic recovery and as the pullback deepens concerns that the global outlook will see a sharp decline,” said Edward Moya, senior analyst at OANDA.

“The rough demand outlook is shaky and is unlikely to improve until global immunization improves.”

Chinese factory activity growth declined sharply in July as demand fell for the first time in more than a year, in part due to high product prices, a company survey on Monday showed, highlighting the challenges facing the global manufacturing hub.

The weaker results from the private survey, which includes mostly export-oriented and small manufacturers, are broadly in line with an official survey released on Saturday that showed activity has been growing at the slowest rate it has been growing for 17 months. Continue reading

A Reuters poll, also weighing on prices, found that the Organization of Petroleum Exporting Countries (OPEC) oil production rose to its highest level since April 2020 in July as the group further eased production restrictions as part of a pact with its allies during the Top exporter Saudi Arabia has allowed a voluntary supply cut to expire. Continue reading

As coronavirus cases continue to surge around the world, analysts said higher vaccination rates would limit the need for the tough lockdowns that dampen demand during the peak of the pandemic last year.

The United States will not re-lock to contain COVID-19, but “things will get worse” as the Delta variant fuels a surge in cases, mostly among the unvaccinated, leading US infectious disease experts, Dr. Anthony Fauci said on Sunday. Continue reading

India’s daily gasoline consumption surpassed pre-pandemic levels last month as states eased COVID-19 lockdowns while gas oil sales were low, suggesting subdued industrial activity in July. Continue reading

The United States and Britain said Sunday they believed Iran carried out an attack on an Israel-managed oil tanker off the coast of Oman on Thursday that killed a British man and a Romanian, and promised to work with partners to resolve this to respond to it. Continue reading

Reporting by Jessica Jaganathan; Edited by Kenneth Maxwell and Edmund Klamann

Our Standards: The Thomson Reuters Trust Principles.

Comments are closed.