NYMEX crude falls in Asia after flash HSBC China PMI dips

Investing.com - Crude oil prices fell in Asia on Tuesday as a key HSBC gauge of manufacturing in China declined into contraction.

The HSBC China flash PMI fell to 49.9 in December from 50.0 in November.

On the New York Mercantile Exchange, West Texas Intermediate crude oil futures for delivery in February traded down at $56.04 a barrel, off 0.39%, after hitting an overnight session low of $56.25 a barrel and off a high of $59.00 a barrel.

Brent crude, the global benchmark, slid 1.3% to $61.06 a barrel, the lowest level since July 2009, on ICE Futures Europe on Monday.

Overnight, oil prices tumbled on Monday after a key OPEC country said the oil cartel won't trim output to shore up prices, which fueled ongoing concerns that supply far outstrips demand.

The United Arab Emirates said earlier that OPEC will stand by its recent decision not to trim output to shore up slumping oil prices, news that sent crude futures plunging on Monday.

Oil prices firmed earlier this year on expectations for a more robust U.S. economy to consume more fuel and energy as well as on geopolitical concerns.

While the U.S. economy continues to expand, other major economies are seeing their growth rates cool, which has softened oil prices.

Furthermore, military conflicts in the Ukraine, Syria, Iraq and elsewhere have not disrupted supply as once feared, which is allowing oil prices to slide further.

OPEC countries are presumably allowing prices to fall with the aim of sideling U.S. shale producers, who cost more to produce oil.

On Friday the International Energy Agency said oil supply will remain ample for some time to come.

Non-OPEC countries will also contribute to global supply.

The IEA also said it had cut its 2015 global oil demand growth forecast by 230,000 barrels per day to 0.9 million bpd.

Elsewhere, fears of supply disruptions in Libya due to renewed conflict there failed to overshadow the announcement out of the United Arab Emirates.