CRUDE OIL DIPS TO $102/BBL ON CHINA’S SLUMP

Tokyo, May 1: Brent crude futures fell below $102 a barrel on Monday as investors worried about the outlook for growth in the world's two largest oil consumers, the United States and China, and US oil stocks rose more than expected.

The crude benchmark fell more than seven per cent during April, its biggest monthly decline in 11 months, hurt by economic indicators in recent weeks suggesting the global economy remains in a fragile state.

Growth in China’s manufacturing sector unexpectedly slowed in April as new export orders fell, raising doubts about the strength of the economy after a disappointing first quarter.

Data from the American Petroleum Institute also showed US crude stocks rose by 5.2 million barrels, larger than a forecast one million barrel increase.

Brent crude fell 94 cents to $101.43 a barrel by 9.50 am IST, after falling the most in nearly two weeks on Tuesday.

“Crude prices are down today because of the big stock increase in the API and the worse-than-expected China PMI,” said Mr Ken Hasegawa, a commodity sales manager at Newedge Japan. “Economic indices from China and Euro region have not been good, so better data from those areas, especially Europe, would likely be needed to trigger a rebound in prices,” he said.

China’s official purchasing managers’ index on Wednesday fell to 50.6 in April from an 11-month high in March of 50.9. Analysts had expected the April PMI to be 51. — Reuters