FX.co ★ Oil Prices Tumble On China Demand Concerns

Oil prices fell sharply on Monday as investors weighed a potential increase in supply by oil giant Saudi Aramco and fretted over the prospect of weak economic growth in China hitting fuel demand.

Brent crude futures for October delivery tumbled 3.4 percent to $94.79 a barrel, while WTI crude futures for September settlement were down 3.6 percent at $88.81.

Saudi Aramco plans to raise crude oil output to its maximum capacity of 12.3 million b/d by 2025 fn requested by the Saudi Arabian government to meet the needs of global consumers, Chief Executive Amin Nasser said Sunday during earnings call after the state-owned energy firm announced one of the largest quarterly profits in history.

China's industrial production and retail sales growth for July came in well below estimates, youth unemployment hit a record high in July, investment into real estate fell at a faster pace in July than June and investment into manufacturing slowed its pace of growth, suggesting that the post-lockdown recovery is losing steam.

The lowering of oil demand forecast for 2022 by the Organization of the Petroleum Exporting Countries (OPEC) last week also weighed on prices.