Crude oil fell for the fifth time in six days amid signs of economic weakness in the U.S. and Europe that darkened the outlook for oil demand.
The sharper-than-expected drop in U.S. factory output and manufacturing activity in New York, the recession in the eurozone and the slower growth in China at a time when rising supplies are weighing on oil prices.
U.S. crude inventories fell unexpectedly by 624,000 barrels last week according to the EIA report. Gasoline inventories rose 2.59 million barrels to 217.7 million, the biggest gain since January, while distillate inventories climbed 2.3 million.
- Crude oil is trading around the $93.75 a barrel after falling from the highest $94.40, to the lowest $93.67
- Brent is trading around $103.21 a barrel at the time of writing, after falling 0.45% or $0.47
Data released yesterday showed that the eurozone’s gross domestic product fell 0.2% in the three months ending March after a 0.6% decline in the previous quarter, extending the region’s recession to a record sixth quarter.
Prices however may find some support amid worries of a possible supply disruption from Iran and geopolitical tensions in the Middle East, yet without a further escalation in the crisis oil is unlikely to get a boost.
Markets will turn their focus today on the eurozone’s trade balance and U.S. consumer prices, building permits, housing starts, Philadelphia Fed manufacturing index and the jobless claims.
- Natural gas is trading at $4.084 per cubic feet after rising 0.34%
- Gasoline is trading at $2.8608 a gallon after falling 0.22%
- Heating oil is trading at $2.8686 a gallon after falling 0.40%