Oil’s rally stuttered in Asia with the prospect of higher OPEC+ output in August keeping gains in check despite signs of an economic recovery.
Futures in New York fell 0.7%, after gaining 1.8% on Monday. The OPEC+ producer bloc will pump about 1.5 million barrels a day more in August than in July. Tapering of historic output curbs looks to have already begun: Russia lifted its production slightly in July, while a Bloomberg survey showed that Saudi Arabia, the United Arab Emirates and Kuwait phased out extra supply cutbacks last month.
Crude tracked strong gains in equities on Monday after data showed US manufacturing expanded in July at the fastest pace since March 2019. There was also positive news from the euro area, where factories posted their first expansion in one-and-a-half years, and China, with a private gauge showing the country’s factory activity grew at a faster pace in July than at any point since January 2011.