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Surveys showed on Monday that factories across the United
States, Europe and Asia struggled for momentum in July as
flagging global demand and China's strict COVID-19 restrictions
slowed production.
"These readings did nothing to mitigate the fears of recession,"
said Tamas Varga at oil broker PVM.
Brent crude was down $1.40, or 1.4%, to $98.63 a barrel by 0817
GMT, while U.S. West Texas Intermediate crude fell $1.00, or
1.1%, to $92.89.
Oil soared earlier in 2022, with Brent in March coming close to
its all time high of $147 a barrel after Russia's invasion of
Ukraine added to supply concerns. Concerns about slowing growth
have since eclipsed tight supply.
"The upward momentum of oil prices has been gradually fading,"
analysts at Haitong Futures said. "Once the supply and demand
situation shows any sign of further deterioration, oil is likely
to lead the decline among commodities."
In focus this week is a meeting on Wednesday between the
Organization of the Petroleum Exporting Countries (OPEC) and
allies including Russia, together known as OPEC+, to decide
whether to increase output in September.
Two of eight OPEC+ sources told Reuters that a modest increase
for September would be discussed, while the rest said producers
are likely to hold output steady.
Also coming into view is the latest weekly reading on U.S.
inventories. Analysts expect a decline in crude and gasoline
stocks. This week's first report is due at 2030 GMT from the
American Petroleum Institute. [EIA/S]
(Additional reporting by Muyu Xu; editing by Jason Neely)
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