Crude sinks after weak factory data
Russia competes with Saudi Arabia for the title of biggest crude oil and refined oil products exporter. PHOTO: FILE
Oil prices dropped sharply on Monday as weak manufacturing data in several countries weighed on the demand outlook while investors braced for this week’s meeting of OPEC and its producer allies on supply.
Brent crude futures fell $4.10, or 3.9%, to $99.87 a barrel by 1719 GMT, having fallen to a session low of $99.09 a barrel.
US West Texas Intermediate crude fell $4.93, or 5%, to $93.69 a barrel, after hitting a low of $92.42. A break for Brent prices below the support level of $102.68 could trigger a drop into a range of $99.52 to $101.26, Reuter’s technical analyst Wang Tao said.
Factories across the United States, Europe and Asia struggled for momentum in July as flagging global demand and China’s strict Covid-19 restrictions slowed production, surveys showed on Monday, likely adding to fears of economies sliding into recession.
Brent and WTI both ended July with a second straight monthly loss for the first time since 2020 as soaring inflation and higher interest rates raise fears of a recession that would erode fuel demand.
Published in The Express Tribune, August 2nd, 2022.
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