Oil prices fall as weak manufacturing data stoke fears of recession

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FILE PHOTO: A sticker indicates crude oil on the side of a storage tank in the Permian Basin in Mentone, Loving County, Texas, USA File Photo/REUTERS/Angus Mordant

Oil prices edged lower on Tuesday, extending losses from the previous session, as investors worried about global oil demand following weak manufacturing data in several countries.

Brent futures fell 29 cents to $99.74 a barrel at 0002 GMT, with WTI futures falling 22 cents to $93.67 a barrel.

The fall came after Brent crude futures slumped to a low of $99.09 a barrel on Monday, their lowest since July 15. The U.S. crude benchmark fell to $92.42 a barrel, its lowest since July 14.

Prices have been volatile as investors assess tight global supply and fear a possible global recession.

Recession concerns intensified on Monday as surveys in the United States, Europe and Asia showed factories struggled to find momentum in July. Lower global demand and China’s strict COVID-19 restrictions have slowed production.

The price cuts also come as market participants await the outcome of a meeting on Wednesday between the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, known as OPEC+, to decide September production.

A Fox Business reporter said Saudi Arabia will push OPEC+ to increase oil production at the meeting.

Two of eight OPEC+ sources in a Reuters survey said a modest increase for September would be discussed at the Aug. 3 meeting. The rest said production should remain stable.

Meanwhile, the United States on Monday imposed sanctions on Chinese and other companies it says helped sell tens of millions of dollars worth of Iranian oil and petrochemicals to East Asia as they seek to put pressure on Tehran to curb its nuclear program.

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