Oil prices were hit by data on manufacturing activity in China, which fell faster than expected.
World oil prices fell significantly for the second day in a row and are at their lowest level since the beginning of this month. This was confirmed by trading data on Wednesday, May 31.
Thus, Brent crude oil for August delivery on the London ICE Futures exchange today fell another $1.82 (-2.47%) to $71.89 per barrel.
In turn, WTI crude futures for July delivery on the New York Mercantile Exchange fell $1.85 (-2.66%) to $67.61 a barrel.
At the same time, both benchmarks fell more than 4% on Tuesday.
Oil prices fell as fears of a slowdown in demand from China after the release of weaker economic data outweighed some positive developments on the US debt ceiling bill, Reuters reported.
Manufacturing activity in China contracted faster than expected in May due to weaker demand. The official Purchasing Managers’ Index (PMI) fell to 48.8 from 49.2 in April. The result missed the forecast of 49.4.
In the US, however, trader sentiment remains cautious, despite legislation championed by President Joe Biden and Speaker of the House Kevin McCarthy that seeks to lift America’s $31.4 trillion debt ceiling and achieve new federal cuts. the costs were forwarded to the full House of Representatives for discussion. The bill is expected to be voted on Wednesday.
“Depending on how the vote plays out before the end of the week, we can expect an upside or downside impact on the oil market, but traders will be wary of the news,” said Suvro Sakar, a senior energy analyst at DBS Bank.
Recall that in April Russia increased oil exports to the maximum since the beginning of the war against Ukraine. Also, the aggressor country did not comply with the announced reduction of supplies by 500,000 barrels per day.
At the same time, Russia estimated a decline in oil and gas revenues for the month.
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Source: korrespondent
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