RIYADH: Oil prices dropped on Monday as weak manufacturing data from China and Japan weighed on the demand outlook while investors braced for this week’s meeting of officials from the OPEC and other top crude producers on supply adjustments.
Brent crude futures were down 2.35 percent, at $101.53 a barrel by 03.40 p.m Saudi time. West Texas Intermediate crude CLc1 was down 3.08 percent, at $95.58.
Brent and WTI ended July with second straight monthly losses for the first time since 2020 as soaring inflation and higher interest rates raise fears of a recession that would erode fuel demand.
Kuwait reappoints oil, finance ministers in new cabinet
Kuwait reappointed oil minister Mohammed Al-Fares and finance minister Abdul Wahab Al-Rasheed in a cabinet formed on Monday under a new prime minister, largely resembling the caretaker government that resigned in April.
Last week the crown prince of the Gulf Arab OPEC producer named Sheikh Ahmad Nawaf Al-Sabah as prime minister to replace Sheikh Sabah Al-Khalid, who had faced a combative parliament in a feud between the government and elected assembly that has hindered fiscal reform.
Now that a government has been formed, parliament is expected to hold a session to approve the state budget.
Russia’s membership vital for success of agreement, says OPEC secretary general
OPEC’s new secretary general said that Russia’s membership in OPEC+ is vital for the success of the agreement, Kuwait’s Alrai newspaper reported on Sunday, quoting an exclusive interview with Haitham Al-Ghais.
He said OPEC is not in competition with Russia, calling it “a big, main and highly influential player in the world energy map,” Alrai reported.
Al-Ghais, Kuwait’s former OPEC governor, will head his first OPEC+ meeting on Aug. 3, in which the group will consider keeping oil output unchanged for September, despite calls from the US for more supply.
Although a modest output increase is also likely to be discussed, eight sources told Reuters last week.
He told Alrai that “OPEC doesn’t control oil prices, but it practices what is called tuning the markets in terms of supply and demand,” describing the current state of the oil market as “very volatile and turbulent.”
He added about the recent hikes in oil prices: “As for me, I still stress that the recent rise in oil prices is not only related to the developments between Russia and Ukraine.”
Libya says oil production at 1.2 million bpd
Libya’s oil production is at 1.2 million barrels per day, oil minister Mohammed Oun from the Tripoli-based Unity government told Reuters in a text message on Sunday.
(With input from Reuters)
