petrol

Oil prices dropped again today, thanks to increased concerns about demand growth, due to the economic slowdown in China, while a dip in the US dollar and supply disruption worries restricted prices from falling further.

Brent crude fell by 12 cents to $107.05 a barrel, while US oil declined by 50 cents at $104.20 a barrel, reported Reuters.

Investors are awaiting official data on the Chinese manufacturing sector as preliminary data from HSBC showed that activities hit an 11-month low in July.

The US dollar dropped to a one-month low against the yen on Monday, while a further dip in the dollar is expected with the Federal Reserve’s policy meeting scheduled to take place on Tuesday.

The Energy Information Administration (EIA) has released its data, which revealed global oil production continues to be robust, while US crude output hit its highest level since 1990 in the week ended 19 July.

Oil prices got some boost from supply disruption concerns after explosions in Benghazi city, Libya and protests in Egypt.

Crude supplies were impacted as the North Sea’s Forties pipeline reduced pumping rates by about 40,000 barrels per day (bpd) following maintenance shutdown.


Image: There are increased concerns over the Chinese economic slowdown. Photo courtesy of freedigitalphotos.

Energy