Oil prices drop amid demand worries-Xinhua

Oil prices drop amid demand worries

Source: Xinhua| 2022-08-02 05:44:16|Editor:

NEW YORK, Aug. 1 (Xinhua) -- Oil prices tumbled on Monday as demand worries prevailed.

The West Texas Intermediate for September delivery shed 4.73 U.S. dollars, or 4.8 percent, to settle at 93.89 dollars a barrel on the New York Mercantile Exchange. Brent crude for October delivery decreased 3.94 dollars, or 3.8 percent, to close at 100.03 dollars a barrel on the London ICE Futures Exchange.

The above market reactions came after weak data from major economies fueled concerns that slowing global growth would harm energy demand.

S&P Global's final manufacturing purchasing managers' index for the eurozone fell below the crucial 50 mark in July to 49.8, from 52.1 in June, data showed on Monday.

Elsewhere, the Institute for Supply Management said Monday that its closely-watched gauge of U.S. manufacturing activity declined to 52.8 percent in July from 53 percent a month earlier. While a reading above 50 percent indicates expansion, the latest print was the lowest since June 2020.

Meanwhile, traders turned their eyes to the Organization of the Petroleum Exporting Countries and its allies, collectively known as OPEC+, as the group is expected to meet later this week to discuss future output strategy.