Drops In Oil Continues, Investors Remain Concerned
Oil prices fell on Monday as investors prepared for this week’s meeting of officials from OPEC and other major producers on supply adjustments as disappointing factory data from China and Japan for the recent month impacted demand.
At 0608 GMT, the price of Brent oil futures was down 82 cents, or 0.8 percent, at $103.15 a barrel. U.S. West Texas Intermediate oil was down $1.18 or 1.2 percent, trading at $97.44 per barrel. Fresh COVID- A temporary increase in manufacturing activity in China, the world’s largest consumer of crude oil, was put to an end by COVID-19 lockdowns in June.
According to statistics released on Monday, Japanese industrial activity grew at its slowest pace in 10 months in July. Oil prices were mostly pressured today by China’s weak manufacturing PMI, according to CMC Markets analyst Tina Teng. The second-largest economy in the world’s recovery from the COVID lockdowns may not be as favorable as originally anticipated, according to the statistics, which also cast doubt on the prospects for demand for crude oil markets.
Fluctuations In Energy Markets continue
Fuel sales to drivers in Britain are declining, according to ANZ analysts, and gasoline consumption for this time of year is still below the five-year average. As a result, economists in a poll decreased their expectation for average Brent prices in 2022 to $105.75 a barrel for the first time since April. Their WTI prediction dropped to $101.28. To decide on the output for September, the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, will meet on Wednesday. The conference on August 3 would probably discuss a modest increase for September, according to two of the eight OPEC+ sources, while the other six predicted that output will likely remain unchanged.
Following US Vice President Joe Biden’s trip to Saudi Arabia last month, the meeting took place. Although President Biden’s trip to Saudi Arabia didn’t result in any immediate oil deliveries, RBC Capital analyst Helima Croft wrote in a note that she believes the Kingdom would reciprocate by continuing to gradually boost production. At the beginning of August, OPEC+ finished unwinding the unprecedented output restrictions that have been in place since the epidemic began in 2020.
