Investing.com - Oil prices slumped in U.S. trading on Thursday
after a widely-followed Chinese output barometer missed
expectations and stoked fears the global economy still faces
headwinds and will demand less energy and fuels than anticipated.
A weaker dollar curbed oil's losses.
On the New York Mercantile Exchange, light sweet crude futures for
delivery in July traded down 0.78% at USD93.54 a barrel on
Thursday, off from a session high of USD94.19 and up from an
earlier session low of USD92.24.
A preliminary reading of China's HSBC manufacturing purchasing
managers' index fell to 49.6 in May from a final reading of 50.4 in
April, missing market expectations for a 50.5 reading.
China is the world's second-largest consumer of oil, and the
disappointing output numbers sent crude prices falling on sentiment
that global demand for goods produced in the Asian giant's
all-important manufacturing sector may be weaker than once thought.
A weaker dollar, however, supported oil prices.
Earlier Thursday, Federal Reserve Bank of St. Louis James Bullard
said that the U.S. central bank wasn't "that close" to scaling back
Stimulus tools such as the Fed's monthly USD85 billion bond-buying
program weaken the dollar to spur recovery, and talk of their
staying in place these days can soften the greenback quickly.
A weaker greenback makes oil an attractively priced commodity in
dollar-denominated exchanges, especially in the eyes of investors
holding other currencies.
Elsewhere on the ICE Futures Exchange, Brent oil futures for July
delivery were down 0.66% at USD101.93 a barrel, up USD8.39 from its
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