Oil prices fell on Monday as worries over China’s economy resurfaced after a survey showing growth in factory activity slipped sharply in the world’s second-largest oil consumer, with concerns compounded by higher crude output from OPEC producers.
Brent crude oil futures slid by 79 cents, or 1.06 percent, to $74.62 a barrel by 0945 GMT, having earlier touched a low of $74.10.
U.S. West Texas Intermediate (WTI) crude futures dropped 88 cents, or 1.2 percent, to $73.07 after slipping to a session low of $72.77.
“China has been leading economic recovery in Asia and if the pullback deepens, concerns will grow that the global outlook will see a significant decline,” said Edward Moya, senior analyst at OANDA.
China’s factory activity growth slipped sharply in July as demand contracted for the first time in more than a year, a survey showed on Monday.