Oil prices lower on weak Europe, China dataAdmin
Agence France-Presse . Singapore
Oil prices were lower in Asian trade Thursday, weighed by weak economic data from Europe and China, as well as an increase in US crude stockpiles indicating faltering demand.
New York’s main contract, light sweet crude for delivery in April, was down 39 cents to $105.89, while Brent North Sea crude for April delivery shed 19 cents to $122.71 in afternoon trade.
‘Manufacturing data from China and parts of Europe will have reminded many that clear skies are not forecast anytime soon,’ IG Markets Singapore said in a commentary.
‘Chances have grown that the eurozone will slip into recession taking other casualties with it,’ it added.
British banking giant HSBC on Wednesday said China’s manufacturing activity continued to contract in February as export orders weakened, in a further sign that the eurozone crisis and US weakness are hurting demand in the world’s second largest economy.
HSBC’s preliminary purchasing managers’ index stood at 49.7 in February. A reading above 50 points indicates growth, while a score below indicates contraction.
A PMI for services and industry in Europe compiled by research firm Markit also sank to 49.7 points from 50.5 points in January, sparking fresh fears that the region is heading for recession.
Analysts said the market is also being weighed down by American Petroleum Institute forecasts that US oil inventories rose 3.55 million barrels last week, indicating weakening demand in the world’s top oil consumer.