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Crude oil futures slip lower after weak euro zone data

Published 05/02/2012, 05:44 AM
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Investing.com - Crude oil futures were lower in European morning trade on Wednesday, following weak data out of the euro zone, while markets looked ahead to U.S. government data on inventory levels later in the day.

On the New York Mercantile Exchange, light, sweet crude futures for delivery in June traded at USD105.72 a barrel, shedding 0.46%.

Oil prices weakened after final euro zone manufacturing data for April came in weaker-than-expected, with the manufacturing purchasing managers’ index slumping to a 34-month low of 45.9 in April, down from 47.7 in March and below the preliminary estimate of 46.0.

German manufacturing output fell at the fastest rate since July 2009, with its manufacturing PMI tumbling to 46.2, from 48.4 in March, while a separate report showed that the German unemployment rate also rose last month.

The data overshadowed more robust manufacturing reports from China and the U.S. amid renewed concerns over the outlook for global economic growth.

Data on Tuesday showed that the U.S. manufacturing sector expanded at the fastest rate in 10 months in April, easing concerns that the economic recovery in the U.S. is losing momentum and dampening speculation over the possibility of a third round of easing by the Federal Reserve.

Earlier Wednesday, Chinese data showed that the HSBC manufacturing index improved to 49.3 in April from 48.3 in March, indicating that the world's second-largest economy is improving after growth slowed in the first quarter.

Investors remained cautious ahead of data from the U.S. Department of Energy on crude storage levels, due out later Wednesday.

A report by the American Petroleum Institute, an industry group, on Tuesday showed crude-oil inventories rose by 2.04 million barrels on the week ended April 27.

Market participants were also shifting their focus to U.S. monthly jobs figures for April, to be released Friday after data in March showed a slowdown in hiring in the world’s largest oil consumer.

On the ICE Futures Exchange, Brent oil futures for June delivery were down 0.29% to trade at USD119.31 a barrel, up USD13.59 from its U.S. counterpart.

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