09:11 AM EDT, 09/03/2024 (MT Newswires) -- Oil prices weakened for a second-straight session early on Tuesday as further weak economic data from China, the end of the U.S. summer driving season and next month's likely return of some shut-in supply from OPEC offset falling supply from Libya.

West Texas Intermediate crude for October delivery was last seen down US$0.74 to US$72.81 per barrel, while November Brent crude, the global benchmark, was down US$1.43 to US$76.09.

China, the No.1 importer, on Monday reported its manufacturing sector contracted in July and exports fell as its economy continues to slow. The news comes as the U.S. driving season ended with the Labor Day weekend while OPEC is scheduled to begin returning 2.2-million barrels per day of voluntary cuts to the market beginning in October, depending on market conditions. The cartel is slated to return 83,000 barrels per day monthly for the fourth quarter.

"We could make the case that the prudent course of action would be to wait for December before hitting the play button on the taper given the resurgent demand concerns. While the APAC region was supposed to carry a majority of the growth this year, China's underperformance has dented 2024 growth projections and has continued to trail both 2023 crude import and refinery throughput levels," Helima Croft, Head of Global Commodity Strategy and MENA Research at RBC Capital Markets, noted.

Support for prices is coming as supply from Libya remains withheld amid a dispute between the North African country's two competing governments over control of its central bank. Reuters reported the exports from Libya's ports are suspended, with production for some fields shut in. The news agency said production fell to 591,000 barrel per day last week, down from 1.28-million bpd in July.