COVID, China’s Economy, OPEC Pushing Oil Prices Lower

Oil prices trade lower in Tuesday’s action, with West Texas Crude prices in the mid-$71 per barrel range. Industry experts say a trio of specific pressures are weighing oil prices lower right now.

First in the increase in the number of COVID-cases, thanks to the Delta variant concerns many that the global economy will stall in the coming months.

In addition, concerns are growing about the health of China’s economy. Factory activity in that country expanded in July at the slowest pace in nearly a year and a half as higher raw material costs, equipment maintenance and extreme weather weighed on business activity.

Also weighing on prices, a Reuters survey found that oil output from OPEC nations rose in July to its highest since April 2020, as the group further eased production curbs under a pact with its allies and top exporter Saudi Arabia phased out a voluntary supply cut.

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