Brent crude futures dropped $3.49, or 3.56%, to $94.66 a barrel by 0945 GMT after settling 1.5% weaker on Friday.
U.S. WTI crude fell $3.32, or 3.61%, at $88.77, following a 2.4% drop in the prior session.
China’s economy unexpectedly stalled in July. Meanwhile, according to government data, refinery production fell to 12.53M BPD, its weakest after March 2020.
ING bank cut its projection for China’s 2022 GDP increase to 4% from 4.4%. It cautioned that an additional downgrade is feasible, relying on the strength in exports mourning from high inflation, ongoing coronavirus restrictions, and unemployment increase in mainland China.
Reviving The 2015 Nuclear Deal
Analysts stated that the oil supply could increase if Iran and the US take an offer from the EU to restore the 2015 nuclear deal, which would terminate sanctions on Iranian oil exports.
Iran’s Foreign Minister Hossein Amirabdollahian stated on Monday that Iran will react to the EU’s nuclear text later in the day and that a deal can be completed if the U.S. approves of the three remaining points.
Counting to the bearish sentiment, Saudi Aramco (TADAWUL:2222) stands prepared to increase crude oil production to its highest capacity of 12M BPD if ordered by the Saudi Arabian government and Chief Executive Amin Nasser informed reporters on Sunday.
And a harmed oil pipeline component that disrupted production at several offshore U.S. Gulf of Mexico platforms was restored late Friday, a Louisiana official said, with producers moving to reactivate some of the suspended production.