Investing.com - Crude oil futures declined in Asian trade Friday, following the release of U.S. economic data showing manufacturing slowed less than anticipated but still fell to its lowest level since July 2009.
On the New York Mercantile Exchange light, sweet crude futures for October delivery traded at USD88.70 a barrel during early Asian trade, falling 0.08%, after hitting a daily high of USD88.93.
The U.S. Institute of Supply Management reported earlier Thursday, that its index of purchasing managers fell to 50.6 in the month of August from 50.9 the month before. That was better than analyst’s forecasts of a retreat to 48.5 for the month but still represented a contraction in activity.
Separately, the U.S. Department of Labor released data for the week ending August 26, showing that the number of Americans filing for initial job benefits dropped by 12,000 to a seasonally adjusted 409,000, in line with market expectations.
In Europe, Markit Economics reported that its August purchasing manager’s index for manufacturing dropped to a two-year low to 49.0, below market expectations of retention of the previous month’s figure of 49.7.
Oil traders pay close attention to manufacturing trends as harbingers of changes in demand for energy.
Meanwhile, oil producers in the Gulf of Mexico prepared for Tropical Storm Katia as it strengthened to hurricane status, threatening U.S. production in the region which accounts for 29% of the nation’s total.
British Petroleum reported it had already ordered the evacuation of non-essential workers from four of its platforms in the Gulf.
A weakening U.S. dollar helped to minimize losses in oil futures, as dollar-denominated futures contracts tend to rise when the dollar falls.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, fell 0.02% to 74.56.
On the ICE Futures Exchange Brent oil futures for October delivery gained 0.27% to trade at USD114.41.