RIYADH: Oil slipped on Tuesday as investors absorbed a bleak outlook for fuel demand with data pointing to a global manufacturing downturn just as OPEC+ producers meet this week to decide whether to increase supply.
Brent crude was down $1.40, or 1.4 percent, to $98.63 a barrel by 0817 GMT, while US West Texas Intermediate crude fell $1.00, or 1.1 percent, to $92.89.
The slide came after Brent futures slumped on Monday to a session low of $99.09 a barrel, their lowest since July 15. The US crude benchmark dropped to as low as $92.42 a barrel, its weakest since July 14.
US targets Chinese, UAE firms in new Iran oil sanctions
The US on Monday imposed sanctions on Chinese and other firms which allegedly helped to sell tens of millions of dollars in Iranian oil and petrochemical products to East Asia as it seeks to raise pressure on Tehran to curb its nuclear program.
The US Treasury and the US State Departments imposed sanctions on a total of six companies, four based in Hong Kong, one in Singapore, and one in the UAE in actions that were announced in separate statements.
The Treasury accused Arabian Gulf Petrochemical Industry Commercial Co., one of Iran’s largest petrochemical brokers, of using the firms to facilitate the sale of Iranian petroleum and petrochemical products to East Asia.
The Treasury targeted UAE-based Blue Cactus Heavy Equipment and Machinery Spare Parts Trading, which it said helped sell millions of dollars of Iranian-origin petroleum products to Hong Kong-based Triliance Petrochemical Co. Ltd., which has previously been sanctioned by the US.
It also targeted Hong Kong-based Farwell Canyon HK Ltd. and Shekufei International Trading Co., for facilitating such sales for onward shipment to buyers in East Asia.
The Treasury accused PGPICC of using the firm's bank accounts, along with those of Hong Kong and Malaysia-based PZNFR Trading Ltd., to collect millions of dollars in proceeds.
(With input from Reuters)
