Brent crude oil fell under pressure on Wednesday morning after weak data and growing inventories worried investors. The commodity fell for a second day and traded at $110.19 at 9:00 GMT.
According to CNBC, American reserves grew by 4.7 million barrels last weekend, much higher than the 2.2 million barrels originally forecast. This increase could suggest that the number one oil consuming nation's economy is still struggling to recover in the wake of a financial crisis.
Further pressure came from poor economic data in Europe, where most countries remain in a recession. Eurozone manufacturing and jobless data suggested that the region was far from recovery and added to concern about global demand.
The bloc's manufacturing activity fell at its fastest pace in three months, and declined especially sharply in France, Italy and Spain. Even Ireland struggled and posted its first manufacturing contraction in 13 months.
The region's refineries also underwent seasonal maintenance and diminished crude demand within the region.
Elsewhere, manufacturing data supported the idea that global demand would decline and weighed on Brent prices. British manufacturing activity fell for the second month in a row in March and in the US, factory activity grew, but at its slowest rate in three months.
Looking forward, investors will be watching for US jobs data due out later in the week to provide insight into the oil consuming giant's economic health.
On Thursday, many will also have their eyes on the European Central Bank's monthly policy meeting for clues about the region's response to the recent financial and political problems.
BY Laura Brodbeck
According to CNBC, American reserves grew by 4.7 million barrels last weekend, much higher than the 2.2 million barrels originally forecast. This increase could suggest that the number one oil consuming nation's economy is still struggling to recover in the wake of a financial crisis.
Further pressure came from poor economic data in Europe, where most countries remain in a recession. Eurozone manufacturing and jobless data suggested that the region was far from recovery and added to concern about global demand.
The bloc's manufacturing activity fell at its fastest pace in three months, and declined especially sharply in France, Italy and Spain. Even Ireland struggled and posted its first manufacturing contraction in 13 months.
The region's refineries also underwent seasonal maintenance and diminished crude demand within the region.
Elsewhere, manufacturing data supported the idea that global demand would decline and weighed on Brent prices. British manufacturing activity fell for the second month in a row in March and in the US, factory activity grew, but at its slowest rate in three months.
Looking forward, investors will be watching for US jobs data due out later in the week to provide insight into the oil consuming giant's economic health.
On Thursday, many will also have their eyes on the European Central Bank's monthly policy meeting for clues about the region's response to the recent financial and political problems.
BY Laura Brodbeck