Oil slips on China COVID curbs, weak factory activity data

Oil prices fell on Monday following weaker-than-expected factory activity data out of China and on concerns its widening COVID-19 curbs will curtail demand, Reuters reported.
Brent crude futures dropped 63 cents, or 0.7%, to $95.14 a barrel by 0420 GMT, after slipping 1.2% on Friday.
U.S. West Texas Intermediate (WTI) crude was at $87.43 a barrel, down 47 cents, or 0.5%, after settling down 1.3% on Friday.
“The purchasing managers’ index (PMI) data contracting adds to the post-China congress party blues for oil markets. It is not difficult to draw a straight line from weaker PMIs to China’s COVID-zero policy,” said Stephen Innes, managing partner of SPI Asset Management.
“So long as COVID-zero remains entrenched, it will continue to thwart oil bulls.”
Factory activity in China, the world’s largest crude importer, fell unexpectedly in October, an official survey showed on Monday, weighed down by softening global demand and strict COVID-19 restrictions that hit production. read more
Chinese cities are doubling down on Beijing’s zero-COVID policy as outbreaks widen, dampening earlier hopes of a rebound in demand.