Oil prices fell again on Tuesday as investors digested a bleak outlook for fuel demand, with data indicating a global manufacturing slump just as major crude producers meet this week to decide whether to increase supply.
By 0421 GMT, Brent crude prices were down 77 cents, or 0.8 per cent, to $99.26 a barrel, while WTI crude futures were down 67 cents, or 0.7 per cent, to $93.22 a barrel.
Brent futures fell to a session low of $99.09 per barrel on Monday, their lowest since July 15. The US oil benchmark fell as low as $92.42 a barrel, its lowest level since July 14.
"Crude prices fell after a slew of industrial activity statistics showed the globe is on the verge of a massive global economic downturn, and on anticipation for higher oil supply following a very positive earnings season for oil corporations," said Edward Moya, senior market analyst at OANDA.
Recessionary worries were heightened on Monday after surveys from the United States, Europe and Asia revealed that manufacturers battled for momentum in July. Global demand was weak, and China's COVID-19 limitations hindered manufacturing.
Prices are also falling as market investors await the conclusion of a meeting on Wednesday between the Organization of Petroleum Exporting Countries (OPEC) and allies, including Russia, known as OPEC+, to decide on September output.
According to two of eight OPEC+ sources polled by Reuters, a minor increase for September would be addressed at the Aug. 3 meeting. The rest of the output is anticipated to remain constant.
According to a Fox Business reporter, Saudi Arabia will press OPEC+ to expand oil output during the summit.
"Oil prices' upward impetus has been progressively diminishing... If the supply and demand situation continues to deteriorate, oil is expected to lead the commodity slide "Haitong Futures experts stated.
Meanwhile, the US imposed sanctions on Chinese and other entities on Monday, alleging that they assisted in the sale of tens of millions of dollars worth of Iranian oil and petrochemical goods to East Asia, to put pressure on Tehran to curtail its nuclear programme.
The potential of a visit to Taiwan by US House Speaker Nancy Pelosi, despite Beijing's warnings, also casts a shadow over the market. The visit would be the first by a high-ranking US official in almost 25 years, potentially escalating tensions between the US and China.