Crude falls by more than $1/bbl on weak China data

23 April 2013 10:45  [Source: ICIS news]

SINGAPORE (ICIS)--Crude prices fell by more than $1.00/bbl on Tuesday, cancelling out gains made the previous day amid concerns over China’s weak manufacturing data that may have implications on oil demand from the world’s second largest consumer.

At 09:14 GMT, June Brent crude on London’s ICE futures exchange was trading at $98.98/bbl, down by $1.41/bbl from the previous close.

Earlier, the North Sea benchmark fell to a session low of $98.78/bbl, down by $1.61/bbl.

June NYMEX light sweet crude futures (WTI) were trading at $87.98/bbl, down by $1.21/bbl from the previous close. Earlier, the US benchmark hit a low of $87.80/bbl, down $1.39/bbl.

HSBC’s flash April purchasing managers' index (PMI) for China was assessed at 50.5, a decline of 1.1 points from the March figure, on account of lower new export orders.

PMI is viewed as a key indicator of manufacturing and economic activity. A PMI figure over 50 is viewed as sign of expansion in economic activity, while a figure below 50 is viewed as a sign of a contraction.

The weak China PMI data added to ongoing worries over the global economic outlook following last week’s release of downbeat GDP data from China, disappointing US economic figures and cuts to the IMF global growth forecast for 2013.

Early this month, OPEC and the International Energy Agency (IEA) also lowered their global oil demand growth forecasts for 2013 amid concerns over the strength of the world economy.

($1 = €0.77)

By: James Dennis
+65 6780 4327

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index