New York, Aug 1 The price of Texas Intermediate Oil (WTI) fell 4.8% on Monday to settle at $93.89 a barrel, due to low manufacturing data from China and Japan released today that weigh on the demand outlook black gold
At the close of trading on the New York Mercantile Exchange (Nymex), WTI futures contracts for September delivery were down $4.73 from the previous close.
The China Purchasing Manager Index (PMI, benchmark indicator for the industrial sector) compiled by the British economic information company IHS Markit rose from 51.7 points in June to 50.4 in July, according to figures released on Monday.
The data is far from what was predicted by analysts, who predicted that it would reach 52 points.
Meanwhile, Japanese manufacturing activity hit its weakest rate in 10 months in July, data showed on Monday.
Asian factories struggled in July as global demand slumped and China’s strict restrictions over new COVID-19 outbreaks slowed production.
Next Wednesday, the Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia, known as OPEC+, will meet in Vienna.
“OPEC + hinted that they can accelerate increases in their collective production targets,” says analyst Tom Essaye today, in a report by the Sevens Report firm.
The potential increase would come after US President Joe Biden went to Saudi Arabia last month hoping to strike a deal to turn on the black gold taps.
September natural gas futures were up 5 cents to $8.28, and gasoline futures due the same month were down 11 cents to $2.99 a gallon. EFE