Oil markets were hit this morning by a slowdown in global manufacturing activity.

US crude fell by 9¢ to stand at $94.80 and Brent crude lost 30¢ to $116.50 a barrel.

The drop in manufacturing overshadowed the expected approval of a $2.1trn debt deal by the US to avert a default by the world’s top crude consumer, reports Reuters.

A manufacturing report by the US Institute for Supply Management showed that factory activity in the US fell to 50.9 in July, its lowest since July 2009.