Global oil prices are continuing to decline due to growing concerns over the demand for “black gold.” On Tuesday, September 3rd, the price of November futures for Brent crude on the ICE Futures London exchange fell by $1.80 (2.32%), reaching $75.72 per barrel. Meanwhile, October futures for WTI crude on the New York Mercantile Exchange (NYMEX) lost $1.19 (1.62%) to settle at $72.36 per barrel, reported Reuters
According to Reuters, the drop in Brent prices is linked to slowing economic growth in China, the world’s largest importer of crude oil. This has heightened concerns about demand, overshadowing the impact of halted oil production and exports from Libya.
In August, China’s Purchasing Managers’ Index (PMI) reached a six-month low, with new export orders falling for the first time in eight months. Additionally, new home prices in the country rose at their slowest pace this year.
Meanwhile, Libya continues to face challenges with oil production: exports from key ports were halted on Monday, and production has been cut due to ongoing conflicts between political groups over control of the central bank and oil revenues.
Traders are also focusing on this week’s upcoming U.S. labor market report for August. Analysts surveyed by Trading Economics predict that the report, set to be released on Friday, will show a decrease in unemployment to 4.2% from 4.3%, along with an acceleration in job growth to 165,000 from 114,000 in July. The weak July report has raised concerns about a slowdown in U.S. economic growth, while also increasing the likelihood of a quick reduction in interest rates by the Federal Reserve.
