Monday, 1 August 2022

Oil tumbles after weak factory data sparks demand concerns | Reuters

Oil tumbles after weak factory data sparks demand concerns | Reuters

Oil prices dropped sharply on Monday as weak manufacturing data from China and Europe weighed on the demand outlook while investors braced for this week's meeting of officials from OPEC and other top crude producers on supply.

Brent crude futures were down $3.77, or 3.6%, at $100.20 a barrel by 1319 GMT, having fallen to a session low of $99.75.

U.S. West Texas Intermediate crude was down $4.59, or 4.7%, at $94.03, after hitting a low of $93.49.

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, Reuters technical analyst Wang Tao said.

Factories across Asia and Europe struggled in July as flagging global demand and China's strict COVID-19 restrictions slowed production, surveys showed on Monday, adding to concerns about economies sliding into recession. read more

S&P Global's final manufacturing Purchasing Managers' Index (PMI) for the euro zone fell to 49.8 in July from June's 52.1, falling below the 50 mark separating growth from contraction for the first time since June 2020.

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