Oil prices fall on economic data, record weekly gains

Oil prices fell, on July 22, after investors valuated the supply disruptions and amid signs of economic slowdown in Europe.

The Eurozone business activity hit its lowest level since February 2021, with the S&P Global Index falling to 49.4 points in the preliminary reading for July from 52 points in June.

The US business activity also contracted for the first time in two years, amid a sharp decline in the performance of service activity and a slowdown in the industrial sector.

Investors are watching the impact of the Keystone pipeline disruptions, as TC Energy reduced operating rates by about 15% on a segment of the Keystone pipeline running from Canada’s oil sands to US largest crude hub.

Libya also announced the resumption of production in several oil fields this week, as production is expected to return to 1.2 million barrels per day (bpd) from a week to 10 days.

Brent crude futures for September delivery fell 0.6%, or $0.66, to $103.20 a barrel, but recorded weekly gains of 2%. Meanwhile, NYMEX crude oil for September delivery was down 1.7%, or $1.65, to $94.70 a barrel, recording slight weekly gains of 0.1%.