Oil Falls Ahead of OPEC+ Meeting: Analysts Cut Brent Price Forecast For 2022

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Oil Falls Ahead of OPEC+ Meeting: Analysts Cut Brent Price Forecast For 2022
Credit: © Reuters.

By Malvika Gurung

Investing.com -- Oil prices tumbled over 1% on Monday post disappointing economic data from China and Japan for the July month, painting a bleak picture for crude demand, while all eyes were set on the OPEC+ meeting on supply adjustments due this week.

At 11:32 am, Brent crude lowered 0.9%, trading at $103.05/barrel, while WTI Futures declined 1.23% at $97.41/barrel.

Both the crude indices continued posting losses for the second straight month in July, first time since 2020 due to concerns of curtailing fuel demand amid soaring inflation and fears of aggressive interest rate hikes pushing the global economy into recession.

Weak manufacturing data for July from leading Asian economies China and Japan weighed on oil prices on Monday, raising concerns on demand outlook.

The world’s largest crude oil importer China’s July manufacturing PMI came out lower than expected, while Japan’s figure expanded at its weakest rate in 10 months amid pressures from supply disruptions and mounting prices.

According to ANZ analysts, fuel sales to drivers in Britain is falling, while demand for gasoline was under a five-year average for this time of the year, noted Reuters. 

Consequently, the agency’s analysts cut their forecast for 2022 average Brent prices to $105.75/barrel for the first time since April.

"China's disappointing manufacturing PMI is the primary factor that pressed on oil prices today," said Tina Teng of CMC (NS: CMC ) Markets.

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