Investors are eyeing the OPEC+ meeting on Wednesday.
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The price of Brent North Sea oil showed a decrease of 3.1 percent to 100.75 dollars per barrel after 17:15 CEST. Earlier in the session, it fell as low as $99.16 per barrel.
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US light West Texas Intermediate (WTI) crude oil depreciated 4.2 percent and hovered around $94.51 per barrel.
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Factories in Asia and Europe struggled in July. Weakening global demand and strict anti-pandemic restrictions in China have slowed production.
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Eurozone manufacturing activity fell last month for the first time in two years. Monday’s S&P Global report reinforces fears that the eurozone could slip into recession.
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The Purchasing Managers’ Index (PMI) for the manufacturing industry fell to 49.8 in July from 52.1 points in June. For the first time since June 2020, it fell below the 50-point threshold that separates growth from decline.
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Both Brent and WTI closed July with monthly losses for the first time since 2020, and for the second time in a row. Rising inflation and higher interest rates are raising fears of a recession that would undermine fuel demand.
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Analysts polled by Reuters cut their estimate for the average price of Brent crude for 2022 to $105.75 a barrel for the first time since April. Their estimate for WTI fell to $101.28.
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The OPEC+ group consists of the Organization of the Petroleum Exporting Countries (OPEC) and its allies, led by Russia.
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OPEC+ will discuss its production policy on Wednesday and will consider keeping production unchanged in September, according to Reuters sources. He will also discuss a slight increase in production.
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