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

Oil prices fell Monday, August 2nd 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.