Oil Price Falls Below $100/bbl; Weak Factory Data Weighs

Oil price at the time of writing this story at around 12:00 pm (IST) trades in the red, with Brent crude down by 0.29% at $99.74 per bbl, while WTI benchmark is at $93.73 per bbl. The losses in the commodity are on the back of weak factory data reported in many of the nations, sparking concerns on its global demand situation.

In the previous session, brent futures declined to the day's low of $99.09 per bbl, its lowest since July 15. Also, at the same time the US crude benchmark slumped to its lowest of $92.42 per bbl, its weakest since July 14.

On Monday, recessionary concerns escalated after surveys revealed that factories didn't gained momentum during the last month in the US, Asia and Europe. Also, oil production registered a slow down amid Covid restrictions in China and sagging global demand.

Another reason for the oil price drop is that market participants await the decision on September output to be decided in the meeting scheduled for Wednesday between OPEC and allied nations including Russia, collectively known as OPEC+.

As per a Fox Business new reported Saudi Arabia will nudge OPEC + to enhance oil production at the meeting.