Oil prices fall 5% near December lows

Asian markets

After the Labor Day holiday, stocks took a sharp dive yesterday, with the Nasdaq dropping 3% in its worst September start since 2002. The steep decline in tech stocks was mainly triggered by a slump in semiconductor companies, with Nvidia plunging more than 9.5% .

Nvidia continued to slide in after-hours trading, falling an additional 2.42%, marking the biggest single-day loss of market capitalization in history. The drop was sparked by an antitrust investigation.

In currencies

The ISM Manufacturing PMI for August inched up to 47.2 from 46.8, though it fell short of the expected 47.5. This data supported the dollar, which gained strength, while the euro weakened. The euro also faced additional pressure following comments from an ECB official, suggesting that a 25-basis point rate cut in September couldn't be ruled out.

In Commodities

Oil prices dropped by over 5%, nearing their lowest level since December, driven by OPEC+'s announcement that eight member countries will increase production starting in October. Additionally, the potential resolution of the Libyan oil dispute added further downward pressure on prices.

Weak data from China, reported since the start of the week, has continued to exert pressure on prices, as sluggish demand is expected to persist.

WTI touched lows of $68.772 this morning while Brent was hovered near $72.83.