Oil declines over $1 on China COVID curbs, weak factory activity data

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Oil prices fell over $1 on Monday following weaker-than-expected factory activity data out of China and on concerns its widening COVID-19 curbs will curtail demand.

Brent crude futures dropped $1.10,  to $94.67 a barrel  after slipping 1.2% on Friday.

U.S. West Texas Intermediate (WTI) crude was at $86.83 a barrel, down $1.07, or 1.2%, after settling down 1.3% on Friday.

Brent and WTI, however, are on track for their first monthly gains since May, up 7.7% and 9.3% respectively, so far.

Factory activity in China, the world’s largest crude importer, fell unexpectedly in October, an official survey showed on Monday, weighed down by softening global demand and strict COVID-19 restrictions that hit production.

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

Strict COVID-19 curbs in China have dampened economic and business activity, curtailing oil demand. China’s crude oil import.

The euro zone is likely entering a recession with its October business activity contracting at the fastest in nearly two years, according to a S&P Global survey, as rising costs of living keeps consumers cautious and saps demand.

European Central Bank policymakers are also standing behind plans to keep raising interest  ..




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