Oil prices are under pressure after the U.S. and China released weak July production data.
West Texas crude oil futures fell as investors worried about the spread of the coronavirus. Add to that the slowdown in production in the U.S. and China, which could further affect oil demand.
The Institute of Supply Management (ISM) said its manufacturing index fell to 59.5, the lowest level. It was lower than analysts’ estimates of 60.9 after hitting 60.6 in June. As new orders fell, the US manufacturing index was affected.
Markit and Caixin released survey results. China’s manufacturing purchasing managers’ index fell to a 15-month low in July as demand in the sector declined for the first time in more than a year. China’s manufacturing PMI fell to 50.3 in July from 51.3 in June, bringing the July PMI to its lowest level since August 2020 and below analysts’ expectations at 51.1.
Another point that recently put pressure on the markets is the increase in oil production. The OPEC increased the production volume in July to 26.72 million barrels per day, which is the highest level since April 2020.
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