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Crude oil futures fall to 1-month low on China concerns

Published 06/03/2013, 04:02 AM
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Investing.com - Crude oil futures fell to a one-month low on Monday, as appetite for riskier assets weakened following the release of disappointing Chinese manufacturing data.

On the New York Mercantile Exchange, light sweet crude futures for delivery in July traded at USD91.66 a barrel during European morning trade, down 0.35% on the day.

New York-traded oil prices fell by as much as 0.7% earlier in the day to hit a session low of USD91.29 a barrel, the weakest level since May 2.

Data released earlier in the day showed that China’s final HSBC Flash Purchasing Managers Index fell to 49.2 in May from a flash reading of 49.6 and down from 50.4 in April.

The disappointing report came one day after a government report showed that China’s manufacturing purchasing managers' index inched up to 50.8 last month from 50.6 in April.

China is the world's second largest oil consumer after the U.S. and manufacturing numbers are used as indicators for fuel demand growth.

Concerns over ample global supplies also added to the selling pressure.

On Friday, the Organization of the Petroleum Exporting Countries decided to leave global output quotas unchanged at 30 million barrels per day for the third consecutive meeting.

Ministers from the 12-member group will next gather on December 4.

Investors are now looking ahead to the release of a closely watched report on U.S. nonfarm payrolls on Friday for further clues regarding the strength of the U.S. economy.

The U.S. is the world’s biggest oil consuming country, responsible for almost 22% of global oil demand.

Elsewhere, on the ICE Futures Exchange, Brent oil futures for June delivery shed 0.2% to trade at USD100.18 a barrel, with the spread between the Brent and crude contracts standing at USD8.52 a barrel.

Earlier in the session, London-traded Brent prices fell to a low of USD99.67 a barrel, the weakest level since May 2.

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