July Brent falls over $4/bbl on weak China, Germany manufacturing

01 June 2012 13:56  [Source: ICIS news]

LONDON (ICIS)--The front-month July Brent crude oil futures contract lost more than $4.00/bbl on Friday on the back of weak manufacturing data from China and Germany amid continued fears of eurozone instability.

By 12:40 GMT, the front-month July ICE Brent contract fell to an intra-day low at $97.70/bbl, a loss of $4.17/bbl from the last close. The contract then edged higher to trade around $98.30/bbl.

At the same time, the front-month July NYMEX WTI contract was trading around $83.00/bbl, having touched an intra-day low at $82.56/bbl, a loss of $3.97/bbl against Thursday’s close.

China’s official purchasing managers’ index fell to 50.40 in May, the lowest level record so far this year. The falling index raised fears that China, the world’s second largest consumer of crude oil, will cut back its demand for the product.

Germany, Europe’s strongest economy, also showed signs of slowing down with its manufacturing index falling. The German economy was the strongest in the eurozone during the first quarter, preventing the eurozone economy as a whole from falling into a technical recession.

By: Kawai Wong
+44 20 8652 3214

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