Oil prices down on weak US manufacturing data; Brent crude below $100/bbl

Oil prices edged lower on Tuesday, extending losses from the past session, as buyers concerned about world-wide oil need next weak producing info in many international locations.

Brent crude LCOc1 futures fell 29 cents to $99.74 a barrel by 0002 GMT, with WTI crude CLc1 futures down 22 cents at $93.67 a barrel.

The slide came immediately after Brent futures slumped on Monday to a session minimal of $99.09 a barrel, their cheapest because July 15. The US crude benchmark dropped to as low as $92.42 a barrel, its weakest since July 14.

Prices have been unstable, as buyers weigh restricted world-wide offer with fears of a likely worldwide recession.

Recessionary worries ended up heightened on Monday as surveys from the United States, Europe and Asia showed that factories struggled for momentum in July. Flagging world-wide demand and China’s stringent COVID-19 constraints slowed output.

The rate drops also arrive as current market individuals await the end result of a conference on Wednesday involving the Firm of the Petroleum Exporting International locations (OPEC) and allies which includes Russia, alongside one another known as OPEC+, to determine on September output.

A Fox Business news reporter said Saudi Arabia will force OPEC+ to increase oil creation at the meeting.

Two of 8 OPEC+ sources in a Reuters study reported that a modest raise for September would be mentioned at the Aug. 3 meeting. The rest claimed output is possible to be held regular. 

Meanwhile the United States on Monday imposed sanctions on Chinese and other corporations it explained assisted to market tens of millions of dollars’ in Iranian oil and petrochemical products and solutions to East Asia as it seeks to increase stress on Tehran to control its nuclear programme.