US, Chinese Manufacturing Slows As Oil Prices Plummet

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  • TEMPO.CO, Jakarta- World oil prices slumped on Monday with Brent crude oil falling about 5 percent, after Chinese and U.S. manufacturing showed a decline, reports said Tuesday, August 4.

    U.S standards, crude light sweet or West Texas Intermediate (WTI) for September shipment is down 4.1 percent or $1.95 and closed at $45.17 per barrel in the New York Mercantile Exchange, said AFP.

    Brent North Sea crude oil for September shipment ended at $49.52 per barrel, dropping $2.69 or 5.2 percent from last Friday’s closing in the Intercontinental Exchange London.

    Last Friday, July 31, world oil prices also fell more than two percent after OPEC said it would not cut its production towards the price fall.

    The new manufacturing data in the U.S. and China, the two world largest economy and energy consumer, darkens oil demand.

    On the offering side, there are concerns on the possibility of flooding the global market. The concerns came after comments made by Iranian Oil Minister Bijan Zanganeh on the increase in Iranian oil exports after the sanctions were revoked as part of the country’s agreement with six major countries to limit its nuclear program.