Crude futures were seen trading lower as it heads for a fifth weekly decline, the longest losing streak in nine months during Friday’s trading session.
The North American West Texas Intermediate (WTI) crude for October delivery fell 0.25% to trade at $93.73 a barrel on the New York Mercantile Exchange. While futures for European benchmark Brent crude for October settlement lost 0.17% to $102.62 a barrel on the ICE Futures Europe exchange based in London.
Crude supplies at Cushing, Oklahoma increased by 1.76 million barrels to 20.2 million, report from the EIA showed. The report also revealed that gasoline stockpiles in the US, the world’s biggest oil consumer, expanded by 585,000 barrels last week.
A separate crude supply report from the American Petroleum Institute released on Thursday reported that “US crude oil production in July remained strong, rising 13.9% from last year to average nearly 8.5 million barrels per day, the highest July output level since 1986.”
Meanwhile, the Chinese preliminary Purchasing Managers’ index from HSBC Holdings and Markit Economics fell to a three-month low of 50.3 in August from the previous reading of 51.7 recorded in July. A figure above 50 indicates expansion, while a reading below shows contraction. The disappointing figures for the Chinese preliminary PMI is raising concerns of reduced fuel demand from the world’s second largest economy.
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A report from the International energy Agency based in Paris showed that the oil consumption for this year is expected to fall, decreasing its projection by 180,000 a day and by 90,000 barrels a day for 2015.
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