SINGAPORE: 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 Opec producers.
Brent crude oil futures slid by 74 cents, or 1 per cent, to $74.67 a barrel, after dropping to a low of $74.10 earlier in the day.
US West Texas Intermediate (WTI) crude futures dropped 70 cents, or 1 per cent, to $73.25 a barrel after slipping to a session low of $72.77.
“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, senior analyst at OANDA.
“The crude demand outlook is on shaky ground and that probably will not improve until global vaccinations improve.” China’s factory activity growth slipped sharply in July as demand contracted for the first time in more than a year. — Reuters
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