UNITED STATES (OBSERVATORY) – Oil prices have fallen since the beginning of trading on Monday, as markets remain concerned about slowing economic growth. However, by the beginning of European trading, oil prices began to rise.
Technical analyst Reuters Wang Tao said that Brent and WTI are likely to be under pressure soon, testing support at $ 70.62 per barrel and $ 64.83 per barrel, respectively.
Last week, China reported a slowdown in production growth in manufacturing, while retail sales and fixed asset investment were also below the forecast.
“The disappointing industrial data from China, as well as concerns about emerging market economies focused on Turkey, have a negative impact on commodities,” Edward Bell of Emirates NBD bank said in a note on Sunday.
“The recent decline in base prices should moderate the growth rates of exploration and production activity in the US and lead to a slowdown in overall production growth,” Bell said.
According to Baker Hughes, the number of oil rigs last week remained unchanged at 869.
Outside the US, traders said that US sanctions against Iran could soon affect prices.
The US government imposed financial sanctions against Iran, which from November will also target the country’s oil sector.
According to a Reuters poll, Iran produced about 3.65 million barrels per day in July, making it the third-largest producer in the Organization of Petroleum Exporting Countries (OPEC) for Saudi Arabia and Iraq.
Futures for Brent crude rose in price by 0.33% to $ 72.07 per barrel, while futures for oil grade WTI rose by 0.02% to $ 65.22 per barrel.