Singapore (FFN Business) – Oil prices dropped on Tuesday, with Brent crude falling below $79.50 a barrel, as concerns over weakening demand in China and easing tensions in the Middle East pressured the market.
Brent crude futures fell 29 cents to $79.49 a barrel, while US West Texas Intermediate (WTI) crude lost 32 cents to $75.49 a barrel.
Investor sentiment has been dampened by a series of economic indicators pointing to a slowdown in China, the world’s largest oil importer. The latest data on factory activity reinforced those concerns, with July’s manufacturing PMI coming in below expectations.
Additionally, easing tensions in the Middle East after Israel signaled a measured response to a Hezbollah attack have also contributed to the decline in oil prices.
The market is now focused on the upcoming meeting of OPEC+ to assess the group’s production policies.
