FXStreet (Mumbai) – Oil prices at both the sides of the Atlantic dropped to multi month lows on Monday as OPEC supply in July rose to a new high, while weak China data increased concerns regarding the demand outlook.
Iran could boost crude supplies
The supply worries further intensified after Iranian Oil Minister Bijan Zanganeh said Iran plans to raise output by 500,000 barrels per day (bpd) as soon as sanctions are lifted and by a million bpd within months.
Meanwhile, as per Reuters survey, the OPEC group’s oil output hit the highest monthly level in recent history in July. The bearish pressure on crude also strengthened after the Chinese manufacturing PMI unexpectedly stalled in July, adding to worries about the demand outlook for oil.
Brent crude for September delivery currently trades 0.84% lower at USD 51.77/barrel. WTI Crude for September delivery trades 0.82% lower at USD 46.73/barrel.
(Market News Provided by FXstreet)