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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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Citi's Morse Says Brent Will Continue 'Downward Drift' to Mid $80s
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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.