Oil down amid virus concerns, sluggish manufacturing
Oil dropped in Asia on Tuesday as COVID-19 worries and declining manufacturing activity in the US and China clouded fuel demand outlook.
Brent oil futures went down 0.11% to $72.81 by 12:47 AM ET (4:47 AM GMT), while WTI futures fell 0.10% to $71.19. Both futures have experienced an over 3% drop on Monday but still hover near the $71 mark.
A slowdown in manufacturing activities in both the US and China has also added to the worries of investors. In the US, the manufacturing purchasing managers index (PMI) was 63.4 in July while the Institute of Supply Management (ISM) manufacturing PMI was 59.5.
In China, the world’s largest oil importer, data released earlier in the week have shown that Caixin had a 50.3 PMI in July, while the manufacturing and non-manufacturing PMIs were 50.4 and 53.3, respectively.
China is also presently struggling to contain the latest surge in coronavirus cases in the country.
In related news, the Organization of the Petroleum Exporting Countries and allies (OPEC+) has put into motion its plan to increase production by 400,000 barrels a day each month from August onwards.