New York’s West Texas Intermediate (WTI) crude futures ended lower Monday following several countries, including China and the United States, released weak manufacturing data. This has led investors to fear that a slowdown in economic activity would affect oil demand. Meanwhile, investors are keeping an eye on the meeting of the Organization of the Petroleum Exporting Countries (OPEC) and its allies. or OPEC Plus on Wednesday
- The WTI crude oil contract was delivered in September. It fell $4.73, or 4.8%, at $93.89 a barrel.
- The Brent crude oil contract (BRENT) delivered in October. It was down $3.94, or 3.8%, to close at $100.03 a barrel.
Investors are worried regarding a slowdown in global economic activity. especially in the manufacturing sector This will result in a weaker oil demand. The Institute for Supply Management (ISM) said its manufacturing index fell to 52.8 in July, the lowest level in two years since June. 2020
The China National Bureau of Statistics (NBS) reported that the Manufacturing Purchasing Managers’ Index (PMI) fell to 49 in July from 50.2 in June, while the S&P Global The final euro zone manufacturing PMI fell to 49.8 in July from 52.1 in June.
The PMI of China and the Eurozone are below 50, indicating that the manufacturing sector is contracting.
Oil prices were also pressured as Libya increased output to 1.2 million b/d from 800,000 b/d and Baker Hughes, the US oil drilling operator, said. Active US oil rigs There was an increase of 11 platforms in July. This is the 23rd month in a row.
Investors are eyeing the OPEC+ meeting on Wednesday. The meeting will consider the production policy for the month of September. After a resolution to increase production by 648,000 barrels / day in August.
By InfoQuest News Agency (02 Aug 65)
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