Oil falls more than 1% on China’s economic recovery concerns

Oil rigs

Oil prices declined by more than 1% on Monday amid concerns over the speed of China’s economic recovery from the COVID-19 pandemic, and OPEC production levels.

The international benchmark Brent crude was trading down 1.3% at $74.47 per barrel, at 9.00 am Makkah time.

WTI crude fell 1.3% to $73.12 per barrel.

Latest economic data show that industrial activity in China grew at the slowest pace in 17 months in July, with the manufacturing Purchasing Manager’s Index (PMI) easing to 50.4 in July from 50.9 in June.

"China's been leading economic recovery in Asia and if the pullback deepens, concerns will grow that the global outlook will see a significant decline," Reuters reported, citing Edward Moya, senior analyst at OANDA.

Meanwhile, a Reuters survey found that oil output from the Organization of the Petroleum Exporting Countries (OPEC) rose in July to its highest since April 2020.