al jazerra Monday 2nd August2 Aug 2021 14:06
Economy
Business and Economy
Oil slips on worries of a China slowdown, jump in OPEC output
China’s factory activity growth slipped sharply in July as demand contracted for the first time in more than a year.
Oil has risen every month this year except March [File: Luke Sharrett/Bloomberg]
Oil has risen every month this year except March [File: Luke Sharrett/Bloomberg]
2 Aug 2021
Oil prices fell on Monday on worries over China’s economy after a survey showed growth in factory activity slipped sharply in the world’s second-largest oil consumer, with concerns compounded by a rise in oil output from The Organization of the Petroleum Exporting Countries or OPEC producers.
Brent crude oil futures slid by 76 cents, or 1 percent, to $74.65 a barrel by 04:55 GMT while US West Texas Intermediate (WTI) crude futures dropped 69 cents, or 0.9 percent, to $73.26 a barrel after slipping to a session low of $72.87.
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“China’s been leading economic recovery in Asia and if the pullback deepens, concerns will grow that the global outlook will see a significant decline,” said Edward Moya, a senior analyst at OANDA.
“The crude demand outlook is on shaky ground and that probably will not improve until global vaccinations improve.”