Oil prices fell more than a dollar on Monday amid concerns in the Chinese economy showed a sharp decline in production growth, marking reduced demand from the world’s second-largest, while fear of OPEC producers’ increased oil production intensified.
Brent crude oil futures fell by more than $ 2.6, or 3.4%, to $ 72.8 a barrel on early Tuesday, while West Texas Intermediate crude oil futures fell $2.77 , or 3.7% , to $ 71.18 a barrel.
China’s manufacturing operations growth slowed sharply in July, as demand declined for the first time in more than a year, due in part to rising product prices and the identification of challenges facing the global manufacturing hub, according to a business survey Monday.
The weakest results for a private poll showed the slowest growth in activity in 17 months.
Oil production from the Organization of the Petroleum Exporting Countries (OPEC) rose to its highest level in July since April 2020 as the organization eased production restrictions in line with an agreement with its allies and Saudi Arabia, the largest oil exporter, lifted the voluntary cut.