Oil Plunges as China Slowdown Spurs Concern Over Demand Outlook
- Factory activity posts surprise contraction on virus outbreaks
- On supply side, Libyan production returns to early-April level
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Oil slumped as poor manufacturing figures across the globe fueled concerns that an economic slowdown may sap demand for crude.
West Texas Intermediate fell 4.8% to settle below $94 a barrel on Monday in the first day of August trading after posting its first back-to-back monthly loss since late 2020. Weekend data indicated a surprise contraction in Chinese factory activity, highlighting the cost of mobility curbs to tackle Covid-19 outbreaks. Purchasing managers’ indexes also weakened in South Korea and the euro region’s four largest members.