The further COVID-19 lockdowns dampened a brief recovery in factory activity in China, the world’s largest importer of crude oil. The Manufacturing Purchasing Managers’ Index (PMI) Caixin/Markit fell to 50.4 in July from 51.7 a month earlier, well below analysts’ expectations, according to data released on Monday.
For its part, Japanese manufacturing activity expanded in July at its weakest pace in 10 monthsaccording to data released Monday.
Brent and WTI closed July with their second consecutive monthly losses for the first time since 2020since the increase in inflation and the rise in interest rates raise fears of a recession that will erode the demand for fuel.
Analysts polled in a Reuters poll lowered their forecast for average oil prices for the first time since April. Brent in 2022 at $105.75 a barrel. Your estimate for the WTI fell to $101.28.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, known as OPEC+, meet on Wednesday to decide September production.
Two of the eight OPEC+ sources who participated in a Reuters poll said a modest increase for September would be discussed at the meeting on August 3. The rest said production is likely to remain stable.
The group’s new secretary-general, Haitham al-Ghais, reiterated on Sunday that Russia’s membership in OPEC+ is vital to the success of the deal, the Kuwaiti daily Alrai reported.
Prices were also influenced by the increase in Libyan oil production, which reached 1.2 million barrels per day (bpd), compared to 800,000 bpd on July 22, after the lifting of the blockade of several oil facilities.
Source: Ambito
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