The global brent crude prices have fallen to $98 a barrel, which is its lowest in 16-month on Monday mainly due to concerns of a global economic slowdown after weak economic data from the US and China were released.
The price of brent crude for July delivery fell more than $1 to $97.06 at the time of reporting, which is its lowest since January 2011. The price of U. S. crude fell $1.44 to $81.79 a barrel following a low of $81.59 earlier in the session. The level is lowest for the U. S. crude since October 2011.
The unemployment rate in the world's largest economy, the US has risen for the first time in almost a year in the month of May as only about 69,000 jobs were added in the month, according to the latest figures released by the government.
The news from China also added to the pressure. The country reported a slowdown in the manufacturing sector as the purchasing managers' index of Chinese manufacturing activity fell mre than expected. The purchasing managers' index dropped fell to 50.4 points in May compared to 53.3 in April, according to the China Federation of Logistics & Purchasing and the National Bureau of Statistics.