Current Oil Price Falls Close to $93

The current oil price declined to close to $93 after data presented a slowdown in the manufacturing growth of China.

The U.S. benchmark for delivery in June was 45 cents lower to a crude price per barrel of $93.01 during midday trading on the NYMEX, Bangkok time. The contract shed $1.04 to settle at $93.46 a barrel during the previous trading day in expectation of another rise in the crude stocks of the United States.

The industry group, China Federation of Logistics and Purchasing, just released data that presented slower growth in China’s manufacturing for the month of April and a steady decline in the nation’s export orders. The purchasing managers’ index (PMI) of the federation dropped from 50.9 in March to 50.6 in April. On a scale of 100 points, numbers higher than 50 signify growth.

The pace fueled worries that the recovery in the second biggest economy of the world may not meet expectations.

Meanwhile, investors are also waiting for data on the inventories of crude and refined commodities in the United States. Analysts polled by Platts project an increase in oil supplies by 1.4 million barrels during the recently ended week. The report of the Energy Information Administration will be released within the day.

Brent, the benchmark used to assign prices to international types of oil, shed 89 cents to a crude price per barrel of $101.48 on London’s ICE Futures Exchange.

In other energy news, wholesale gasoline moved 2.4 cents lower to $2.778 per gallon. Heating oil dropped 2 cents to a price of $2.82 per gallon. Natural gas gained 2.1 cents to a price of $4.364 per thousand cubic feet.

By: Chris Termeer