Global oil prices plummet on China’s economic data
Global oil prices have plummeted after new data showed that manufacturing activity in the world’s top energy consumer, China, has taken a downturn.
The fall came during Tuesday trading following relative gain a day earlier, AFP reported.
According to the report, US benchmark West Texas Intermediate (WTI) for October delivery shed 64 cents to hit USD 48.56 per barrel.
Meanwhile, Brent North Sea crude for October delivery also lost 95 cents during early afternoon deals in London, falling to USD 53.20.
Crude futures had risen on Monday after revelations that the US government had lowered its domestic production estimate. Another factor helping oil prices gain relatively on Monday was announcement by the Organization of the Petroleum Exporting Countries (OPEC) that it was "ready to talk" with non-OPEC producers about prices. OPEC’s announcement came after oil prices fell to their lowest levels in six and a half years last month.
On Tuesday, however, data showed the Purchasing Managers' Index (PMI) for China's manufacturing sector was contracting, thus fueling fears about the situation of the world's second biggest economy.
According to the latest figures, the PMI for China's key manufacturing sector fell to a three-year low of 49.7 in August, which was construed as the latest sign of slowing growth in the country.
The figures were followed by US-based Citigroup’s announcement that China was driving prices of commodities, including oil, "as never before, and it is driving them lower."
"We expect China to continue to exert downward pressure on commodity prices in the coming months, representing one of the three key drivers for commodity prices," it added.
Other analysts believed that crude market oversupply was another factor dragging prices down, though both the US and the OPEC talked about possible reduction in oil production levels.
"Firstly, talk is cheap," said Nicholas Teo, market analyst at CMC Markets in Singapore, who added, "Secondly, even though US production has started to fall, June production was still up 7.1 percent over a year ago."
Pakistan says Iran's gas project ‘need of the hour’, pushes for US sanctions waiver
Israeli economy plunges almost 20% as Gaza war takes heavy toll
IMF to urge China to shift growth model towards consumption
Iran: Awakened world public opinion determined to stop Israel war crimes
US House speaker wants National Guard to quell pro-Palestine student protests
Iran, Russia sign MoU to strengthen security cooperation
VIDEO | Iran marks defeat of US military operation in Tabas Desert
VIDEO | Press TV's news headlines
US troopers crack down on pro-Palestinian protests at University of Texas
VIDEO | German warship departs Red Sea as EU 'naval mission' fails
VIDEO | Palestinians inspect rubble of destroyed building in Rafah
This makes it easy to access the Press TV website
