Oil slips on global demand concerns, eyes turn to OPEC+ meeting

Oil prices fell on Tuesday as investors digested a bleak outlook for global fuel demand after data pointing to a global slowdown in the manufacturing sector. In contrast, OPEC+ oil producers meet this week to decide whether to increase supplies.

Surveys on Monday revealed that factories across the United States, Europe and Asia struggled to boost activity in July as global demand faltered and China imposed strict curbs to combat Covid-19, which slowed production.

By 0817 GMT, the price of Brent crude fell by $1.40, or 1.4 percent, to $98.63 a barrel, while US West Texas Intermediate crude fell by a dollar, or 1.1 percent, to $92.89 a barrel.

Two of the eight sources in OPEC + told Reuters that a modest increase in production for the month of September would be discussed, while the rest said that the current production level was likely to be maintained.

Investors are also awaiting the weekly data on US inventories, as analysts anticipate a decline in US crude and gasoline stocks.

The American Petroleum Institute is expected to release its first report for this week at 2030 GMT.