Crude prices fell during Asian trading hours on Thursday, dropping for the first time in four days amid speculation fuel demand from China will slowdown, following the release of the downbeat manufacturing data from China.
The North American West Texas Intermediate for March delivery lost 0.04% to $96.70 per barrel on the New York Mercantile Exchange at the time of writing. While Brent for March settlement slid 0.24% low, trading at $108.02 per barrel on the ICE Futures Europe exchange at the same time. The European Benchmark crude stood at $11.36 premium to WTI.
Crude – China
China’s PMI for January came in lower than expected, standing at 49.6, data from HSBC Holding PLC and Markit Economics confirmed. Dropping below the previous month’s flash reading of 50.5 and down from analysts forecast of 50.3; a reading below the 50-mark indicates contraction.
The downbeat manufacturing data reveals demand for crude from the world’s second biggest economy will slow.
“Weaker PMI will translate to slowing China oil demand,” said Gordon Kwan , the regional head of oil and gas research at Nomura Holdings Inc. in Hong Kong “Expect oil prices to drift much lower after the ‘U.S. Arctic Express’ cold weather departure.”
Crude – US Stockpiles
In the US, crude stockpiles rose by 4.86 million barrels in the week ended January 17, according to the report released by the American Petroleum Institute (API). The report was delayed due to the Martin Luther King Jr. Day holiday in the US.
Distillate stockpiles, including heating oil and diesel declined by 2.29 million barrels last week, reports from API confirmed.
Stockpiles report from the Energy Information Administration (EIA) is expected to be released later in the day.
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Crude prices fell during Asian trading hours on Thursday, dropping for the first time in four days amid speculation fuel demand from China will slowdown, following the release of the downbeat manufacturing data from China.
The North American West Texas Intermediate for March delivery lost 0.04% to $96.70 per barrel on the New York Mercantile Exchange at the time of writing. While Brent for March settlement slid 0.24% low, trading at $108.02 per barrel on the ICE Futures Europe exchange at the same time. The European Benchmark crude stood at $11.36 premium to WTI.
Crude – China
China’s PMI for January came in lower than expected, standing at 49.6, data from HSBC Holding PLC and Markit Economics confirmed. Dropping below the previous month’s flash reading of 50.5 and down from analysts forecast of 50.3; a reading below the 50-mark indicates contraction.
The downbeat manufacturing data reveals demand for crude from the world’s second biggest economy will slow.
“Weaker PMI will translate to slowing China oil demand,” said Gordon Kwan , the regional head of oil and gas research at Nomura Holdings Inc. in Hong Kong “Expect oil prices to drift much lower after the ‘U.S. Arctic Express’ cold weather departure.”
Crude – US Stockpiles
In the US, crude stockpiles rose by 4.86 million barrels in the week ended January 17, according to the report released by the American Petroleum Institute (API). The report was delayed due to the Martin Luther King Jr. Day holiday in the US.
Distillate stockpiles, including heating oil and diesel declined by 2.29 million barrels last week, reports from API confirmed.
Stockpiles report from the Energy Information Administration (EIA) is expected to be released later in the day.
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