Crude oil falls more than 4% on fears of slowing manufacturing in the U.S. and China

Crude oil futures fell on Monday after several countries, including China and the United States, released weak production data. This led investors to fear that a slowdown in economic activity would hurt oil demand.

In the meantime, investors’ focus is on tomorrow’s OPEC and OPEC+ meeting.

  • WTI crude futures fell $4.73, or 4.8%, to close at $93.89 a barrel.
  • BRENT crude futures fell $3.94, or 3.8%, to close at $100.03 a barrel.

Investors are concerned about a slowdown in global economic activity, particularly in the manufacturing sector, which is expected to lead to weak oil demand.

The Institute for Supply Management (ISM) announced that its manufacturing index fell to 52.8 in July, the lowest level in two years, since June 2020.

China’s National Bureau of Statistics (NBS) reported that the manufacturing purchasing managers’ index fell to 49 in July from 50.2 in June.

S&P Global’s final eurozone manufacturing PMI fell to 49.8 in July from 52.1 in June.

The purchasing managers’ indices for China and the euro zone are below 50, indicating that the manufacturing sector is contracting.

Oil prices also came under pressure as Libya increased its output from 800,000 barrels per day to 1.2 million barrels per day and Baker Hughes, the U.S. oil drilling company, said the number of U.S. oil rigs in operation rose by 11 in July.

The Spot Market is Open

Tuesday, August 2, 2022

Energy
Updated at
USD
Price

Change

%Change
Crude Oil
12.00

93.12

-0.77

-0.82%

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