Crude oil fell on Monday on a stronger U.S. dollar and increased worries over demand of oil from China amid speculation its economic recovery may be threatened by the cash crunch.
China’s manufacturing activity will shrink at a faster pace this month, a preliminary indicator showed last week.
The People`s Bank of China said the nation must adjust its policies, as a cash squeeze in the banking system risks exacerbating an economic slowdown, darkening the outlook for oil demand.
- Crude is trading around $93.22 a barrel after falling $0.47.
- Brent is trading around $100.16 a barrel after falling $0.75.
The stringer U.S. dollar is also weighing on prices, as it makes oil more expensive. The dollar has been rising since last week, when Federal Reserve Chairman Ben Bernanke presented the strategy for rolling back the stimulus program.
The U.S. and 10 other countries adopted a joint statement on June 22 after a meeting in Doha, during which they pledged to increase support for rebel forces in Syria. However, there was not agreement on a military strategy for aiding the Syrian opposition.
- Natural gas is trading at $3.764 per cubic feet after falling 0.19%.
- Gasoline is trading at $2.746 a gallon after falling 0.57%.
- Heating oil is trading at $2.8388 a gallon after falling 0.19%.