After disappointing economic data from China, oil prices fell on Monday. A barrel (159 liters) of North Sea Brent cost one percent less at $ 74.63. The price of a barrel of the American variety WTI fell 1.2 percent to $ 73.06. In the world’s second-largest economy, the mood of purchasing managers in the industry has unexpectedly deteriorated. An index value published by the economic magazine Caixin fell by one point to 50.3 points in July compared to the previous month, and therefore to its lowest level since spring 2020. China is one of the most major oil importers. A gloomy mood in the economy could indicate lower growth and therefore lower demand in China. In addition, the spread of the delta variant of the coronavirus in parts of Asia has also played a role, and with it concerns about mobility restrictions.
Copper investors, meanwhile, have speculated that the Beijing government will take countermeasures with additional investment, said Gianclaudio Torlizzi, a partner at consultancy firm T-Commodity. Other stockbrokers have spoken of possible delivery failures after the Chilean miners’ union called for a strike in the wage dispute at the world’s largest mine, Escondida. The price of copper rose one percent to $ 9,810 per tonne.
The good economic data from the euro area supported the euro. The single European currency appreciated slightly and was listed at 1.1878 dollars in the afternoon. The purchasing managers index fell 0.6 to 62.8 points in July. However, the barometer remained well above the growth threshold of 50. “The fact that growth has slowed slightly after the record high in Q2 2021 should not in itself be a cause for concern,” said Chris Williamson, Chief Economist of Markit.