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FX.co ★ Oil Prices Retreat On China Data

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typeContent_19130:::2022-10-31T09:44:00

Oil Prices Retreat On China Data

Oil prices were moving lower on Monday as weak China data pointed to further loss of momentum in the world's second-largest economy.

Benchmark Brent crude futures fell 0.7 percent to $93.11 a barrel, while WTI crude futures were down 0.8 percent at $87.31.

The downside was capped amid signs that output at the top U.S. shale field is losing steam.

China's factory and services activity both contracted in October as worsening COVID-19 outbreaks created more disruptions for businesses and residents.

The official manufacturing purchasing managers' index (PMI) fell to 49.2 in October from 50.1 in September, and the non-manufacturing PMI, which measures business sentiment in the services and construction sectors, dropped to 48.7 from 50.6 in September as virus disruptions worsened and export orders remained under pressure.

Chinese cities are doubling down on Beijing's zero-COVID policy, dampening earlier hopes of a rebound in demand.

COVID-19 infections continued to rise across China's southern manufacturing hub of Guangzhou, prompting lockdowns in more residential areas.

Mamau's government reinstated some tough COVID curbs and workers appear to have fled the iPhone factory in Zhengzhou amid COVID curbs, raising concerns over China and its strict zero-COVID policy.

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