Crude Oil Below $80, Brent Below $90
Crude oil fell today below $80, while Brent was below $90, as manufacturing was contracting in various parts of the world, signaling that demand for fuel may wane. China’s Manufacturing Purchasing Manager’s Index fell from 48.4 in May to 48.1 in June, the lowest level in 7 months. The eurozone PMI was down from 45.1 to 44.8 this month, reaching the
Adding to the negative impact of the bad manufacturing data, US unemployment claims stayed almost unchanged, while speculators were hoping for a decrease of unemployment. As was expected, markets reacted negatively to all the bad news. The Standard & Poor’s GSCI Index, tracking 24 raw materials, tumbled as much as 2.8 percent. The Standard & Poor’s 500 Index lost 2.2 percent.
Futures for delivery of crude oil in August slid by $3.25 to $78.20 per barrel on NYMEX, reaching the lowest price since October 4. Brent crude declined from $92.59 to $89.25 per barrel, the lowest settlement since December 2, 2010, as of 22:09 GMT on ICE today.
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