Oil Slumps 5% As Investors Await OPEC+ Meeting

Dow Jones2022-08-01

Both international and U.S.-based crude oil benchmarks traded lower on Monday after clinching their second straight monthly loss in July as recession fears have weighed on commodity prices.

Support near the previous low around $93 a barrel for WTI "is likely to be tested again this week as selling interest comes to the market. The oil complex is stalling on recession fears and news that Libya's oil output increased," said Brian Swan, senior commodity analyst at Schneider Electric, in a note.

Oil traders were focused on the upcoming meeting of the Organization of Petroleum Exporting Countries and its allies -- a group known as OPEC+. The meeting is set for Wednesday.

"With the previous agreement having expired as the group has theoretically unwound all of the pandemic production cuts, attention will now shift to how OPEC+ plans to actually hit those targets and whether any further increases will be announced going forward," wrote Craig Erlam, a senior market strategist at OANDA, in a note on Monday.

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Comments

Moonshot
2022-08-02
Moonshot
If oil prices are dropping then why OPEC should increase on their production supply? With gas at record high, oil will be soon shooting to the moon. [Chuckle]
WW1012
2022-08-02
WW1012
Ok
4West
2022-08-02
4West
Nice
jiunnnnn
2022-08-02
jiunnnnn
Waiting
robot1234
2022-08-02
robot1234
Oil drops as weak Chinese factory data heightens demand concerns. Oil prices dropped sharply on Monday as weak manufacturing data from China and Europe weighed on the demand outlook while investors braced for this week’s meeting of officials from OPEC and other top crude producers on supply.Brent crude futures settled $3.94, or 3.79%, lower at $100.03 per barrel. U.S. West Texas Intermediate crude ended the day at $93.89 per barrel, for a loss of 4.8% or $4.73. Factories across Asia and Europe struggled in July as flagging global demand and China’s strict COVID-19 restrictions slowed production, surveys showed on Monday, adding to concerns about economies sliding into recession.Also weighing on prices was a rise in Libyan oil production, which hit 1.2 million barrels per day (bpd), up
Seah CL
2022-08-02
Seah CL
K