Oil prices fell more than 1% on Monday. Official data fell for the third consecutive session after Chinese refining volume and economic activity slowed, with new COVID-19 outbreaks squeezing the world’s second economy.
Brent crude was down 75 cents, or 1.1%, to $69.84 a barrel as of 0442 GMT. West Texas Intermediate (WTI) oil fell 76 cents, or 1.1%, to $67.68 a barrel.
Factory output and retail sales growth slowed sharply in July in China. Data showed expectations were low as new COVID-19 outbreaks and flooding disrupted business.
Weakness in oil futures is triggered by weaker-than-expected growth data from China, the world’s second oil consumer.
China’s crude oil processing last month also fell to its lowest level on a daily basis since May 2020. In China, the world’s largest oil importer, production fell due to tighter quotas for independent refineries, rising inventories and falling profits.
In Japan, the world’s fourth-largest importer of crude oil, many analysts expect modest economic growth in the third quarter as renewed emergency restrictions to deal with record cases of infection put pressure on household spending.
The International Energy Agency said on Thursday that rising demand for crude oil reversed its course in July and is expected to increase at a slower rate for the remainder of 2021 due to rising COVID-19 infections from the Delta variant.
Money managers reduced their net-long U.S. crude futures and options holdings in the week to Aug. 10, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday.
The CFTC said speculators had cut their futures and options positions in New York and London to 283,601 with 21,777 contracts.