Crude oil prices drop amid faltering demand outlook in China
LONDON (Reuters) -Oil prices fell by about 1% on Monday, dropping for a third session, after official data showed that refining throughput and economic activity slowed in China in an indication that COVID-19 outbreaks are crimping the world’s second-largest economy.
Brent crude was down 58 cents, or 0.8%, at $70.01 a barrel by 0943 GMT. U.S. oil fell by 64 cents, or 0.9%, to $67.80. Both contracts dropped by more than $1 earlier in the session.
Chinese factory output and retail sales growth slowed sharply in July, data showed, missing expectations as flooding and fresh outbreaks of COVID-19 disrupted business activity.
China’s crude oil processing last month also fell to the lowest level on a daily basis since May 2020 as independent refiners cut production in the face of tighter quotas, elevated inventories and falling profits. China is the world’s biggest oil importer.
