Disappointing Economic Data, Oil Prices Plunge Over 3%

 Black commodities traded lower in the Asian session after falling more than 3% in the previous session, following weakness in economic data from China and the United States which are the world’s largest oil consumers.

The benchmark Brent crude oil futures traded at $ 72.94 a barrel, after recording a 3.3% decline in Monday’s trading session.

Meanwhile, US WTI futures traded at $ 71.30 a barrel, following a 3.6% decline recorded in the previous session.

Growth in manufacturing activity in China declined sharply in July, driven by a decline in demand for the first time in more than a year.

Moreover, manufacturing activity in the US also grew at a slower-than-expected pace, recording a decline for the second consecutive month in July.

Both of these declines have caused markets to worry that a slowdown in the global economic recovery, especially in key countries will affect demand for crude oil.

Also pressing prices, a Reuters survey reported that oil output from the Organization of the Petroleum Exporting Countries (OPEC), rose in July to its highest level since April 2020.

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