Nearly all gains in U.S. crude oil for 2024 are erased as China manufacturing contracts and an OPEC output hike looms.

• Sources told Reuters that OPEC+ delegates have indicated that the producers' group is still planning to increase oil output in October.
• Manufacturing in China, meanwhile, fell to a six-month low in August

On Tuesday, U.S. crude oil futures dropped over 1%, almost reaching their year-end levels, due to OPEC+'s impending decision to increase production and China's sluggish economy.

Sources informed Reuters and Bloomberg that OPEC+ is still planning to increase oil production in October, as indicated by OPEC+ delegates.

Meanwhile, China's manufacturing decreased to a six-month low in August, as per recent data. Additionally, China is the world's second-largest importer of crude oil.

Here are Tuesday's energy prices:

• The October contract price for crude oil is $71.35 per barrel, a decrease of $1.10, or 1.48%. To date in the year, the United States has seen a 1% increase in its crude oil.
• The December contract price for oil is $73.61 per barrel, a decrease of $1.56, or 2.03%. To date, the global benchmark has fallen 2.4%.
• The price of gasoline in October is $2.04 per gallon, a decrease of 5 cents or 2.53%. So far this year, gasoline prices have fallen by 2.8%.
• The October contract price for natural gas is $2.19 per thousand cubic feet, which is an increase of nearly 7 cents or 3.15%. Despite this, year-to-date gas prices have decreased by 12.7%.

OPEC+ could reverse its planned production increase based on market conditions, according to Helima Croft, head of global commodity strategy at RBC Capital Markets. The best course for OPEC+ would be to wait until December given slowing demand in China.

Major production disruptions in Libya are being overshadowed by the prospect of increased oil output from OPEC and a weak economy in China.

The eastern government in Benghazi has attempted to halt production and exports in Libya, resulting in a conflict with the U.N.-backed government in Tripoli over the leadership of the country's central bank. On Monday, the Libyan National Oil Corporation declared a force majeure at the El-Feel oil field.