Breaking News
Get 40% Off 0
👀 Reveal Warren Buffett's stock picks that are beating the S&P 500 by +174.3% Get 40% Off

Crude oil falls after weak Chinese, European activity data

Published Sep 05, 2023 23:00
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.
 
LCO
-0.90%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
CL
-0.79%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

Investing.com -- Oil prices fell Tuesday, retreating from their highest levels this year as weak Chinese services activity data pointed to more headwinds for the world’s second largest economy, and largest crude importer.

By 08:50 ET (12.50 GMT), the U.S. crude futures traded 0.1% lower at $85.50 a barrel, while the Brent contract dropped 0.5% to $88.52. 

Both contracts recorded large gains last week, and at the start of this week Brent had climbed near its highest level since late-January while WTI traded close to levels last seen in November 2022. 

Chinese economic weakness weighs

Sentiment weakened Tuesday following the release of a private-sector survey which showed that China's services activity expanded at the slowest pace in eight months in August.

The Caixin services purchasing managers’ index rose 51.8 in August, lower than expectations for a reading of 53.6 and July’s figure of 54.1.

Chinese economic growth is considered crucial to shoring up oil demand over the rest of the year, but crude traders have been frustrated by the faltering recovery from its COVID hit.

Eurozone data points toward recession

The economic data out of Europe was also disappointing earlier Tuesday. 

Eurozone PMI data showed that the bloc's dominant services industry fell into contraction in August, suggesting the region could soon drop into recession.

Additionally, business activity in Britain's important services sector fell last month for the first time since the start of the year, while the broader composite PMI dropped to its lowest level since January.

Tight supplies provide underlying support

Still, sentiment in the crude market remains constructive overall, with supply still very tight.

Saudi Arabia, the de facto leader of the Organization of the Petroleum Exporting Countries, is widely expected to shortly announce its will extend a voluntary one million barrel per day oil production cut into October, while Russia indicated last week that it is likely to follow suit.

“Given market expectations, it is unlikely that the two producers would stray away from an extension and so risk a sell-off in the market,” analysts at ING said, in a note.

(Ambar Warrick contributed to this item.)

 

Crude oil falls after weak Chinese, European activity data
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email