Oil falls over 3% on concerns over demand and OPEC supply boost
Oil prices fell more than 3% on Monday after weak economic data from China and the United States, the world's top oil consumers, and higher crude output from OPEC producers stoked fears of weakness in oil demand and oversupply.
Brent crude oil futures settled down $2.52, or 3.3%, at $72.89 a barrel, while U.S. West Texas Intermediate (WTI) crude ended $2.69, or 3.6%, lower at $71.26.
China's factory activity growth slipped sharply in July as demand contracted for the first time in more than a year, a survey showed on Monday.
U.S. manufacturing activity also showed signs of slowing. The pace of growth slowed for the second straight month as spending rotates back to services from goods and shortages of raw materials persist, according to data from the Institute for Supply Management (ISM).
The ISM's index of national factory activity fell to 59.5 last month, the lowest reading since January, from 60.6 in June.
Also weighing on prices, a Reuters survey found that oil output from the Organization of the Petroleum Exporting Countries (OPEC) rose in July to its highest since April 2020.
Reference: Reuters
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