Oil Con­tin­ues to Fall De­spite Good News on China Out­put

The Economic Times - - Commodities Plus -

Even with good global eco­nomic news, oil prices con­tinue to drop. China an­nounced a bet­ter than ex­pected man­u­fac­tur­ing per­for­mance in March on Fri­day, but oil in­vestors still weren’t con­vinced. The coun­try’s pur­chas­ing man­ager’s index (PMI) rose to 50.2 last month, up from Fe­bru­ary’s 49, which sug­gests its slug­gish econ­omy may fi­nally be turn­ing around.

The PMI is a se­ries of eco­nomic in­di­ca­tors de­rived from monthly sur­veys of the pri­vate sec­tor.

West Texas In­ter­me­di­ate (WTI) crude oil was at $37.66 (£26.29) as of 11:10 am GMT (6:10 am ET), down 1.77% from mar­ket open­ing. Brent crude oil, the Euro­pean bench­mark, was at $39.63 (£27.66), down 1.74% and once again be­low the $40 mark.

Con­cerns about over­sup­ply still weigh hard on in­vestors, and they may have taken their cue from Asian mar­kets, which barely re­acted to China’s PMI news.

“The lack of re­ac­tion is a lit­tler per­plex­ing,” Jonathan Bar­ratt of Ay­ers Al­liance told Reuters.

— Busi­ness In­sider

Matthew Nitch Smith

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