Breaking News

Crude extends losses on Chinese data, supply numbers, ignores U.S. data

CommoditiesMay 24, 2013 01:14PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items

Investing.com - Oil prices extended Thursday's losses into U.S. trading on Friday after soft Chinese industrial data and rising U.S. gasoline supplies continued to pressure prices lower on fears supply is outstripping demand.

Solid durables goods data failed to boost spirits in energy markets.

On the New York Mercantile Exchange, light sweet crude futures for delivery in July traded down 0.39% at USD93.88 a barrel on Friday, off from a session high of USD94.43 and up from an earlier session low of USD93.05.

Earlier this week, a preliminary reading of China’s HSBC manufacturing purchasing managers' index fell to 49.6 in May from a final reading of 50.4 in April, missing market expectations for a 50.5 reading.

China is the world's second-largest consumer of oil, and the disappointing output numbers sent crude prices falling on sentiment that global demand for goods produced in the Asian giant's all-important manufacturing sector may be weaker than once thought.

The U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories fell by 338,000 barrels in the week ended May 17, compared to expectations for a decline of 778,000 barrels.

Total U.S. crude oil inventories stood at 394.6 million barrels as of last week.

Total motor gasoline inventories, however, increased by 3.02 million barrels, well above expectations for an increase of 22,000 barrels, which sent crude prices falling on fears less Americans may be traveling this summer in an economy that is already awash in crude oil.

The U.S. is the world’s biggest oil consuming country, responsible for almost 22% of global oil demand.

Better-than-expected U.S. manufacturing data failed to offset the losses.

The Commerce Department reported earlier Friday that core durable goods orders, which are stripped of volatile transportation items, rose 1.3% in April, beating expectations for a 0.5% increase after contracting by 1.7% in March.

Broader orders for durable goods, which include transportation items, rose 3.3% last month, more than market calls for a 1.5% increase after a 5.9% contraction in March.

Elsewhere on the ICE Futures Exchange, Brent oil futures for July delivery were unchanged at USD102.45 a barrel, up USD8.57 from its U.S. counterpart.

Crude extends losses on Chinese data, supply numbers, ignores U.S. data

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Post also to:
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Post 1000
Please wait a minute before you try to comment again.
Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Add Chart to Comment
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email