Oil prices fall below $100 due to demand concerns in China

The price of a barrel of US West Texas Intermediate crude fell 5% to $ 93.69 a barrel (Reuters/Lucy Nicholson/Farrell).

Stock markets diverged on Monday as investors followed a string of corporate earnings reports, while the Oil prices fell On concerns about Chinese demand.

European stock markets closed with no clear directiona month after the month of July, which was marked by economic indicators and business results.

Satchel Paris He ended up losing 0.18% while London decreased by 0.13% and Frankfurt 0.03% practically unchanged.

Milan It gained 0.11% while in Madrid the Ibex-35 closed down 0.87%.

Wall Street rose in the afternoon after opening low The first day of August after a strong month in July.

The price of West Texas Intermediate crude fell 5% on Monday and Brent crude fell below $100 a few days after the OPEC+ cartel of producing countries met.by Concern about oil demand in China.

About 1:10 p.m. GMT, barrel West Texas Middle (WTI) American It fell 5% to $93.69 a barrel and the mark North Sea Brentwhich is the reference in Europe, Break below the $100 barriertrading at $99.99, then 3.83% losses.

Analysts consulted in a survey of Reuters They lowered their forecast for average Brent prices in 2022 to $105.75 a barrel for the first time since April. His estimate of West Texas Intermediate crude fell to $101.28.

The Purchasing Manager Index (PMI, sector reference index) prepared by the British economic information company IHS Markit It fell from 51.7 points in June to 50.4 in Julyless than the 52 integers that analysts had been expecting, according to numbers published today.

slowdown in the Chinese economywhich have been restricted due to the restrictions imposed by the Coronavirus, It makes investors fear a drop in energy demand in the world’s largest consumer.

Investors are also concerned about a slowdown in Japanese manufacturing activity, which expanded in July at the weakest pace in 10 months. According to data released on Monday.

The market is also waiting for the officials meeting in Organization of Petroleum Exporting Countries (OPEC) and its partners this Wednesday by video link, where they will talk about September production.

Two of the eight OPEC+ sources that participated in the survey Reuters They said this at the August 3 meeting A modest increase for September will be discussed. The rest said production was likely to remain stable.

The group’s new Secretary-General, Haitham Al-Ghais, reiterated on Sunday that Russia’s OPEC+ membership is vital to the success of the dealKuwaiti daily newspaper reported The opinion.

The increase in Libyan oil production also affected pricesWhich reached 1.2 million barrels per day, compared to 800,000 barrels per day on July 22, after the blockade of several oil facilities was lifted.

(With information from AFP, EFE and Reuters)

Leave a Comment