11 June 2013 15:09 [Source: ICIS news]
LONDON (ICIS)--Brent crude oil futures extend losses to trade more than $2.00/bbl lower on rising crude oil reserves and production amid bearish data from China.
By 13:30 GMT, the front-month July ICE Brent contract touched an intra-day low at $101.82/bbl, a loss of $2.13/bbl compared with the previous close. The contract then gained to trade around $101.10/bbl.
At the same time, the front-month July NYMEX WTI contract was trading around $94.40/bbl, having touched an intra-day low at $94.04/bbl, a loss of $1.73/bbl compared with the previous close.
The oil market on Tuesday was swamped with a plethora of bearish news items. The US Energy Information Administration (EIA) published a report late on Monday updating the world’s shale oil reserves, which pushed US shale oil reserves to 58bn barrels, up from 38bn barrels estimated in 2011.
This month’s OPEC report showed production in May at 30.57m bbl/day, an increase of 106,000 bbl/day over the previous month. However, it also forecast stronger oil demand growth in the second half of 2013 in response to economic recovery.
Adding to the bearish tone in the market, China released some economic data over the weekend indicating that the world’s second largest economy is showing more signs of slowing down. China’s May export growth rate came in at just 1% increase, while the market was expecting a figure around 7%.
China’s official manufacturing purchasing managers index (PMI) for May was up by 0.20 percentage points to 50.80. However the gains were slim and its non-manufacturing purchasing managers’ index amounted to 54.30, a decrease of 0.20 percentage points from April.
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