Oil prices fall on concerns about China's economic growth and production increase

Category: Latest News

Oil prices fell Monday, August 2 on concerns about the Chinese economy, after a survey showed that factory activity growth fell sharply in the world's second-largest oil consumer, as well as heightened concerns about an increase in oil production from OPEC producers.

Brent crude futures fell 74 cents, or 1%, to $ 74.67 a barrel by 06:53 GMT, after falling to a low of $ 74.10 earlier in the session.

US crude futures fell 70 cents, or about 1%, to $73.25 a barrel.

Today's business survey showed that factory activity growth in China fell sharply in July, with demand contracting for the first time in more than a year, partly due to higher product prices, highlighting the challenges facing the global manufacturing hub.

A Reuters survey also indicated that oil production from the Organization of the Petroleum Exporting Countries rose in July to its highest level since April 2020 , as the organization eased production restrictions under an agreement with its allies, while Saudi Arabia, the largest oil exporter, gradually canceled the voluntary supply cut .

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