Crude prices were seen falling on Tuesday; dragged lower by China’s manufacturing data which came in mixed, as traders raise concerns about the nation’s economy slowdown.
Talks over the crises in Ukraine continue as the tension between Russia and the Western powers over the country continue to weigh on oil prices. Meanwhile, analysts forecast US crude supplies increased for an eleventh week before the release of the data.
Futures for the North American WTI for May delivery declined 0.15% to $101.43 a barrel on the New York Mercantile Exchange at the time of writing, while Brent crude futures for May settlement slipped 0.10% to $107.66 a barrel on the ICE Futures Europe exchange at the same time. The European benchmark crude was at a premium of $6.35 to WTI.
Crude – Chinese Economy
A fresh government reports revealed that China’s manufacturing level grew at a faster rate in March as the Purchasing Managers’ Index (PMI) came in at 50.2 in March, compared to the previous reading of 50.1 seen in February.
In a separate report from HSBC Holdings Plc and Markit Economics revealed that China’s purchasing managers index dropped to 48.0 in March, the lowest since July and compared to the previous reading of 48.5 in February.
Apart from standing as the world’s second largest economy; China is forecasted to account for approximately 11% of the global oil demand this year, while the US is expected to account for 21%, according to forecasts from the International Energy Agency.
Ukraine
Following the talks between Russia and the US over the weekend on how to ease the ongoing tensions in Ukraine, Russia released a list of requirement that could ease the ongoing tension between the nations. As part of the political requirements is a request for military and political neutrality for Ukraine as well as protection of the Russian minority and acceptance of Crimea’s referendum.
Russia has begun to withdraw troops from Ukraine boarder.
The US crude stockpiles probably climbed to 385 million barrels in the week ending March, according to analysts’ forecasts before Wednesday’s report from the Energy Information Administration.
Visit www.hymarkets.com to find out more about our products and start trading today with only $50 using the latest trading technology today
The post Crude Prices Drops on China Economy Worries appeared first on | HY Markets Official blog.
Article provided by HY Markets Forex Blog
