Oil prices drop amid faltering demand outlook in China | Reuters

Oil prices drop amid faltering demand outlook in China | Reuters

Oil prices fell more than 1% on Monday, dropping for a third session, after official data showed that refining throughput and economic activity slowed in China in an indicator that fresh COVID-19 outbreaks are crimping the world's no.2 economy.

Brent crude was down 90 cents, or 1.3%, at $69.69 a barrel by 0649 GMT. U.S. oil fell by 97 cents, or 1.4%, to $67.47 a barrel.

Factory output and retail sales growth slowed sharply in July in China, data showed, missing expectations as fresh outbreaks of COVID-19 and flooding disrupted business activity. read more

"Oil futures weakness ... is likely triggered by weaker-than-expected growth data from China, which is a major consumer of oil," said Kelvin Wong, market analyst at CMC Markets in Singapore. "All in all, the global peak growth narrative has been intensified."