by Staff Writers
New York (AFP) Oct 3, 2012
US oil prices dropped more than four percent Wednesday, hit by glum data on China's services sector and lowered forecasts for Asian growth.
Despite a fall in US crude stockpiles, which normally would push prices higher, New York-traded West Texas Intermediate crude for November delivery sank to $88.14 a barrel, a loss of 3.75 from Tuesday.
In London, Brent North Sea crude for delivery in November fell $3.40 to stand at $108.17 a barrel in late London deals.
Sellers piled in to the market after the purchasing managers index for China's services sector sank to its lowest level in nearly two years, echoing the dismal reading on its manufacturing PMI that showed the sector contracting a second straight month.
Both readings signaled a slowing Chinese economy unlikely to buy as much oil on world markets as has been expected.
In Europe, data on Wednesday showed eurozone private sector business activity remained firmly stuck in the doldrums in September, with the key services sector suffering a very sharp fall.
"The petroleum markets are under selling pressure in Wednesday trade on an apparent wave of long liquidation after China's service sector PMI disappointed and the Asian Development Bank cut its GDP growth forecast for emerging Asia," said Timothy Evans at Citi Futures.
"Money managers own too much oil. Prices can fall dramatically when they cut back on their risk positions," he said.
The fall in US inventories on the government's weekly supply report had little effect on the big picture, he said.
"We have very high inventories of crude oil, we have no shortage."
Powering The World in the 21st Century at Energy-Daily.com
Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.
Iraq September oil exports slightly higher
Baghdad (AFP) Oct 1, 2012
Iraq's oil exports were slightly higher in September compared to the previous month of August, oil ministry spokesman Assem Jihad said on Monday. Iraq exported about 2.6 million barrels per day (bpd) in September against 2.565 million bpd in August, he said. The revenues from September oil exports were $8.4 billion earned at an average price of $107 per barrel, Jihad said. Iraq earned $8 ... read more
|The content herein, unless otherwise known to be public domain, are Copyright 1995-2012 - Space Media Network. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement|