Oil falls as disappointing Chinese manufacturing data released
YEREVAN, September 23. /ARKA/. Oil prices slid on Wednesday after disappointing Chinese manufacturing data added to mounting concerns about the economy of the world’s second-biggest crude buyer, MarketWatch reports.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in NovemberCLX5, +0.78% traded at $46.12 a barrel, down $0.24 in the Globex electronic session. November Brent crude LCOX5, +0.51% on London’s ICE Futures exchange fell $0.32 to $48.76 a barrel.
Nymex crude prices are down roughly 7% month-to-date while Brent is down 9.4% in the same period.
An early reading from Caixin Media Co. and research firm Markit Ltd. showed Chinese manufacturing activity fell to a six-and-a-half year low of 47.0 in September from a final reading of 47.3 in August.
A reading above 50 indicates expansion from the previous month, while a reading below that indicates contraction.
Asian markets reacted negatively to the data. The Hang Seng Index HSI, -2.26% was down 2.1% while the Shanghai Composite Index SHCOMP, -2.19% lost 1.3%. Australia’s S&P ASX 200XJO, -2.07% fell 1.5% and South Korea’s Kospi SEU, -1.89% slipped 1%.
Capital Economics said that while China’s weaker-than-expected manufacturing numbers added to worries over Chinese growth, broader economic indicators don’t point to a deepening economic crisis just yet.
“With most of the key leading indicators such as fiscal spending and credit growth now looking supportive, we continue to expect a cyclical recovery in economic activity over the coming quarters,” the research firm is quoted by MarketWatch. ---0----
On the New York Mercantile Exchange, light, sweet crude futures for delivery in NovemberCLX5, +0.78% traded at $46.12 a barrel, down $0.24 in the Globex electronic session. November Brent crude LCOX5, +0.51% on London’s ICE Futures exchange fell $0.32 to $48.76 a barrel.
Nymex crude prices are down roughly 7% month-to-date while Brent is down 9.4% in the same period.
An early reading from Caixin Media Co. and research firm Markit Ltd. showed Chinese manufacturing activity fell to a six-and-a-half year low of 47.0 in September from a final reading of 47.3 in August.
A reading above 50 indicates expansion from the previous month, while a reading below that indicates contraction.
Asian markets reacted negatively to the data. The Hang Seng Index HSI, -2.26% was down 2.1% while the Shanghai Composite Index SHCOMP, -2.19% lost 1.3%. Australia’s S&P ASX 200XJO, -2.07% fell 1.5% and South Korea’s Kospi SEU, -1.89% slipped 1%.
Capital Economics said that while China’s weaker-than-expected manufacturing numbers added to worries over Chinese growth, broader economic indicators don’t point to a deepening economic crisis just yet.
“With most of the key leading indicators such as fiscal spending and credit growth now looking supportive, we continue to expect a cyclical recovery in economic activity over the coming quarters,” the research firm is quoted by MarketWatch. ---0----