Oil Declines as Manufacturing Shrinks in China, Euro-Area: report
Oil declined the most in two weeks as manufacturing shrank in China and the euro-area, bolstering concern that fuel consumption will diminish, according to a Bloomberg report.
Futures fell as much as 2% after China's economy contracted for a sixth month in April, according to a preliminary reading of a purchasing managers' index. Euro-area services and manufacturing output slipped. The drop in crude prices accelerated as equities tumbled after Europe's backlash against budget cuts gained momentum, Bloomberg said.
Crude oil for June delivery decreased US$1.58, or 1.5%, to US$102.30 a barrel at 12.54 p.m. on the New York Mercantile Exchange. Futures are heading for the biggest decline since April 4. Prices have fallen 8.9% in the past year.
Brent oil for June settlement dropped US$1.01, or 0.9%, to US$117.65 a barrel on the London-based ICE exchange. The European benchmark contract was at a premium of US$15.35 to New York futures, up from US$14.88 on April 20.
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