US slides on demand concerns as China manufacturing slips
February 3, 2014 10:09 am
The US crude futures plummeted in early Asian trade on Monday about worries over oil demand, following a factory growth in China, the top 2 oil consumer in the world, loosened in January to a six month low.
US oil missed 31 cents to $97.18 per barrel in thin trade with Chinese markets closed for the Chinese New Year holiday. It was set 74 cents down at $97.49 on Friday. Brent crude relieved 20 cents to $106.20 from Friday’s close. In January, it concluded 4% lower, the largest monthly percentage decrement since September. China’s official Purchasing Managers’ Index (PMI) dived 50.5 in January from December’s 51 reading, in line with market anticipation, affected by weaker local and foreign demand, a survey said, a soft start for the year that intensifies worries of an economic downturn.
The week ahead has plenty of event risk with a flock of global business surveys and jobs data from the US to give a clearer view on how well the global economy is coping, while the European Central Bank (ECB) might find alleviation in its meeting on Thursday. Acceleration in supply also pressured Brent. OPEC’s oil output went up in January from December’s two and a half year low, because of partial recovery in Libyan supply and higher shipments from Iraq and Iran, based on survey conducted by Reuters.’
Crude exports from Iraq decreased in January to about 2.228 million barrels per day (bpd) but should increase next month, said Oil Minister Abdul Kareem Luaibi. In Yemen, armed tribesmen blasted the country’s major oil pipeline on Saturday, stopping crude flow to its major export terminal less than a month after it was fixed, said oil and local officials. In a sign of the heating climate between Iran and the West, Iran’s foreign minister conducted rare private talks with his US counterpart on Sunday in a three-day security conference in Munich. The minister said it would be a “disaster” if Tehran did not turn a provisional agreement to defuse a decade old conflict over its nuclear program into a permanent deal.
The material has been provided by InstaForex Company – www.instaforex.com
The US crude futures plummeted in early Asian trade on Monday about worries over oil demand, following a factory growth in China, the top 2 oil consumer in the world, loosened in January to a six month low.
US oil missed 31 cents to $97.18 per barrel in thin trade with Chinese markets closed for the Chinese New Year holiday. It was set 74 cents down at $97.49 on Friday. Brent crude relieved 20 cents to $106.20 from Friday’s close. In January, it concluded 4% lower, the largest monthly percentage decrement since September. China’s official Purchasing Managers’ Index (PMI) dived 50.5 in January from December’s 51 reading, in line with market anticipation, affected by weaker local and foreign demand, a survey said, a soft start for the year that intensifies worries of an economic downturn.
The week ahead has plenty of event risk with a flock of global business surveys and jobs data from the US to give a clearer view on how well the global economy is coping, while the European Central Bank (ECB) might find alleviation in its meeting on Thursday. Acceleration in supply also pressured Brent. OPEC’s oil output went up in January from December’s two and a half year low, because of partial recovery in Libyan supply and higher shipments from Iraq and Iran, based on survey conducted by Reuters.’
Crude exports from Iraq decreased in January to about 2.228 million barrels per day (bpd) but should increase next month, said Oil Minister Abdul Kareem Luaibi. In Yemen, armed tribesmen blasted the country’s major oil pipeline on Saturday, stopping crude flow to its major export terminal less than a month after it was fixed, said oil and local officials. In a sign of the heating climate between Iran and the West, Iran’s foreign minister conducted rare private talks with his US counterpart on Sunday in a three-day security conference in Munich. The minister said it would be a “disaster” if Tehran did not turn a provisional agreement to defuse a decade old conflict over its nuclear program into a permanent deal.
The material has been provided by InstaForex Company – www.instaforex.com
Related Posts: