The crotch slides lower; OPEC production levels in focus By Investing.com

Investing.com — Oil prices fell on Monday on concerns about slowing demand growth from top oil importer China, as well as a potential increase in supply from a group of top producers.

By 06:35 ET (1035 GMT), futures were trading 0.1 percent lower at $73.45 a barrel, and the contract was down 0.1 percent at $76.81 a barrel. barrel.

Uncertainty over China’s economy

A private sector survey released earlier on Monday indicated that China’s manufacturing activity returned to growth in August, offering some hope for an economic recovery in the world’s top crude oil importer.

In August, it rose to 50.4 from 49.8 the previous month.

However, this had little impact on the crude market as the country showed on Saturday that Chinese production activity fell to a six-month low in August, raising doubts about future consumption in this key market.

Both Brent and WTI posted losses last week, adding to two consecutive months of weakness, as these demand concerns outweighed recent supply disruptions in Libyan oil and tensions in the oil-rich Middle East.

OPEC’s future plans in focus

Investors are also awaiting a planned increase in oil production by members of the Organization of the Petroleum Exporting Countries and allies, known as OPEC+, next month.

Eight OPEC+ members are scheduled to increase production by 180,000 barrels per day in October as part of a plan to begin unwinding the most recent level of supply cuts of 2.2 million barrels per day.

“Given the lingering concerns about demand, there was a growing part of the market … that believed the group would delay any increase in supply. The group may believe supply disruptions from Libya provide an opportunity to increase supply,” analysts at ING said in a note.

While Libyan exports remain halted, Arabian Gulf Oil Company has resumed production by up to 120,000 bpd to meet domestic needs, engineers said on Sunday, after factional conflict shut down most of the country’s oil fields.