Oil prices drop by 0.9% to $97 per barrel

Oil prices dropped for a second session on Monday as weak China economic data triggered concerns about demand as the world’s largest crude importer.

Meanwhile, the head of the world’s top exporter, Saudi Aramco, said the company was ready to ramp up output.

Brent crude futures fell 89 cents, or 0.9%, to $97.26 a barrel by 0034 GMT after settling 1.5% lower on Friday.

U.S. West Texas Intermediate crude was at $91.27 a barrel, down 82 cents, or 0.9%, after a 2.4% drop in the previous session.

China’s economy unexpectedly slowed in July, while refinery output tumbled to 12.53 million barrels per day, its lowest since March 2020, government data showed. read more

Saudi Aramco stands ready to raise crude oil output to its maximum capacity of 12 million barrels per day (bpd) if requested to do so by the Saudi Arabian government, Chief Executive Amin Nasser earlier told reporters on Sunday.

“We are confident of our ability to ramp up to 12 million bpd any time there is a need or a call from the government or from the ministry of energy to increase our production,” Nasser said.

He added that China’s easing of COVID-19 restrictions and a pickup in the aviation industry could add to demand.

Oil prices rebounded more than 3% last week after a damaged oil pipeline component disrupted output at several offshore Gulf of Mexico platforms and as investors pared back expectations for interest rate increases in the United States.

Reuters/Hauwa Abu