LONDON, Aug 1 Reuters Oil prices dropped on Monday as weak manufacturing data from China and Japan weighed on the demand outlook while investors braced for this week39;s meeting of officials from OPEC and other top crude producers on supply adjustments.

Brent crude futures were down 1.42, or 1.4, at 102.55 a barrel by 1017 GMT. U.S. West Texas Intermediate crude was down 1.85, or 1.9, at 96.77.

Fresh COVID19 lockdowns snuffed out a brief recovery for factory activity in China, the world39;s largest crude oil importer. The CaixinMarkit manufacturing purchasing managers39; index PMI eased to 50.4 in July from 51.7 the previous month, well below analyst expectations, data showed on Monday.

Japanese manufacturing activity expanded at its weakest rate in 10 months in July, data showed on Monday. 

China was already facing an uphill challenge, to put it mildly, with regards to its growth target this year and the fact that manufacturing activity is slowing again doesn39;t bode well, said Oanda analyst Craig Erlam.

Brent and WTI ended July with second straight monthly losses for the first time since 2020 as soaring inflation and higher interest rates raise fears of a recession that would erode fuel demand.

Analysts in a Reuters poll reduced for the first time since April their forecast for 2022 average Brent prices to 105.75 a barrel. Their estimate for WTI fell to 101.28. 

The Organization of the Petroleum Exporting Countries OPECand allies including Russia, together…