Crude oil prices fell on Tuesday due to weak manufacturing and services activity in China in July, sparking concerns about demand and offsetting the bullish sentiment driven by expectations of production cuts in September.
Brent crude declined by almost 0.4% to $85.12 a barrel, while US West Texas Intermediate (WTI) crude was down nearly 0.4% to $81.48 a barrel.
Analysts believe that oil prices are still on track to reach 2023 highs, and the next OPEC+ meeting could be a potential catalyst for the outlook, where Saudi Arabia's voluntary supply cuts are expected to be extended another month. However, China's weak economic data, including its official manufacturing sector purchasing managers' index (PMI) coming in at 49.3, has kept a lid on crude prices in recent months as it is the world's second-largest oil consumer.
