Crude Falls On Weak Economic Data; ECB In Focus

Worries over the outlook for oil demand from the world’s biggest consumer spread across markets after the U.S. posted weaker-than-expected economic data, overshadowing the Federal Reserve`s plan to maintain its stimulus program,

Wedneday's data showed an unexpected slowdown in China’s manufacturing sector, triggering doubts about the strength of the economy, while the U.S. manufacturing growth slowed, underlying worries that growth is cooling.

The data darkened the outlook for global recovery, triggering a sell-off across the markets, yet the U.S. Federal Reserve`s pledge to sticks to its monetary stimulus program to support growth has offered some support.

- Crude oil is trading around the $90.90 a barrel level compared with the opening at $90.95, while the highest is at $91.17 and the lowest is at $90.63

- Brent is trading around $99.82 a barrel after falling 0.13% or $0.13

Adding to the downside pressures on oil prices was the rise in U.S. stockpiles to the highest in 82 years. Data from the Energy Information Administration showed crude supplies increased 6.7 million barrels last week to 395.3 million barrels, the most since 1931.

“It all comes down to demand. We are oversupplied at the moment because consumption levels have just not picked up”, said Carl Larry, president of Oil Outlook and Opinions.

Focus will turn today to the eurozone as anticipation is building for the European Central Bank to cut rates to a historic low of 0.5% at its meeting today, especially after unemployment hit a record high. It would be the first rate cut since July 2012 and it might.

- Natural gas is trading at $4.338 per cubic feet after rising 0.28%

- Gasoline is trading at $2.7215 a gallon after rising 0.08%

- Heating oil is trading at $2.7958 a gallon after rising 0.25%