Global demand concerns weigh on crude in Asia | Pakistan Today

Global demand concerns weigh on crude in Asia

Oil prices eased on demand fears Wednesday following weak manufacturing data out of the United States that added to downbeat figures from Europe and China a day earlier, analysts said.
New York’s main contract, light sweet crude for October delivery, fell a cent to $95.29 a barrel and Brent North Sea crude for delivery in October retreated 18 cents to $114.00.
The US Institute for Supply Management on Tuesday said its purchasing managers index stood at 49.6 percent in August, down from 49.8 in July. A reading below 50 indicates contraction. It was the third month of contraction in a row.
On Monday PMI figures out of China, a driver of global economic growth, showed activity had hit a more than three year low, while other key Asian nations and Europe also saw shrinkage.
A manufacturing malaise affecting China, Europe and the US is sparking fears of a corresponding slump in crude demand, IG Markets said in a report.
“Oil was pushed down by worries of global demand and no reassurance that central banks would be able to stem the tide,” the report stated.
The United States is the world’s largest oil consumer while China is the global leader in energy consumption.
Attention is now focused on a European Central Bank meeting on Thursday, and whether any fresh stimulus measures will be announced by president Mario Draghi to kickstart economic recovery in the troubled region.
But IG Markets warned that “there are growing fears that the level of detail to be released will fall short of market expectations”.

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