Oil fell at the start of the week after weak Chinese economic data added to concerns that a global slowdown could dampen demand.
In the year Fighting Covid-19.
It has seen volatile trading in recent months as fears of an oil slump hurt demand for commodities. Last week, data showed the US economy shrank for the second quarter and the Federal Reserve raised its rate by 75 basis points.
Vivek Dar, director of minerals and energy products research at the Commonwealth Bank of Australia, said: “The fall in China’s manufacturing PMI could be at the center of the fall in oil prices.” He said that the situation in China will renew the concern that world commodity consumption will weaken.
- WTI for September delivery shed 1.3% to $97.32 a barrel in New York trading at 6:07 a.m. in London.
- Brent for October settlement on ICE Futures Europe fell 1% to $102.94 a barrel.
Oil production in Libya has rebounded after a series of disruptions, an OPEC member’s oil minister said. National production has returned to 1.2 million barrels per day, a level seen in early April last year, Mohamed Aoun said in a telephone interview.
Later this week, investors will focus on the meeting of the Organization of the Petroleum Exporting Countries and its allies, including Russia, on group policy for September. As the U.S. urged Saudi Arabia to loosen pipelines to pressure Ukraine to invade, Moscow and Riyadh recently reaffirmed their mutual commitment to a stable market.
Oil markets remain lagging. WTI’s immediate spread — the difference between the two latest contracts — was 1.83 barrels. This is the year-to-date average but lower than a month ago.