Oil prices dipped slightly on Monday as worries about slowing demand from China, the world’s largest oil importer, and potential supply increases from major producers weighed on the market.
As of 06:35 ET (10.35 GMT), the price of Brent crude futures was down 0.1% at $73.45 a barrel, while WTI crude contract dropped 0.1% to $76.81 a barrel.
Uncertainty over China’s economy
A recent private sector survey revealed that China’s manufacturing activity expanded in August, hinting at a possible economic recovery in the country. However, a separate report showed a decline in Chinese manufacturing activity, raising concerns about future oil consumption.
Despite disruptions in Libyan oil supply and geopolitical tensions in the Middle East, both Brent and WTI have been on a downward trend over the past few weeks due to worries about demand.
OPEC future plans in spotlight
Investors are keeping a close eye on OPEC+ members’ plans to increase oil output next month. Eight members are set to boost production by 180,000 barrels per day in October, signaling a move to ease supply cuts implemented earlier.
Analysts speculate that OPEC+ may take advantage of supply disruptions in Libya to ramp up production, despite lingering demand uncertainties.
While Libyan exports remain halted, the Arabian Gulf Oil Company has resumed limited output to meet domestic needs, following a standoff that shut down most of the country’s oilfields.
Overall, concerns about Chinese demand and OPEC+ supply plans continue to drive oil prices in the global market, impacting investors and consumers worldwide.