Business

Oil extends losses from weak industrial data

Investors await Wednesday’s meeting of major oil producers of OPEC+ group

Oil prices continued losses on Tuesday over weaker-than-expected industrial data from big economies, raising global recession concerns.

International benchmark Brent crude was trading at $99.14 per barrel at 09.47 a.m. local time (0647 GMT) for a 0.89% decrease after the previous session closed at $100.03 a barrel.

American benchmark West Texas Intermediate (WTI) was at $93.19 per barrel at the same time for a 0.74% loss after the previous session closed at $93.89 a barrel.

The manufacturing industry Purchasing Managers Index (PMI) data released around the world echoed signs of recession.

The July Manufacturing PMI in the US hit 52.8%,a 0.2 percentage point decrease from June’s reading of 53%, the lowest Manufacturing PMI since June 2020 when it reached 52.4%.

This followed China’s Manufacturing Purchasing Manager’s Index (PMI) dropping to 49 from June’s 50.2, relative to the market expectation of 50.4.

Japan’s manufacturing activity in July was at the slowest rate in the last ten months.

Traders are now keeping tabs on the meeting of the Organization of Petroleum Exporting Countries and its Allies (OPEC+) on Wednesday when the group will decide on their September output schedule.

Source
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