Oil Prices Fall On Disappointing Manufacturing Data
Posted: Tue May 02, 2023 6:55 am
Oil Prices Fall On Disappointing Manufacturing Data
Read more here:
https://oilprice.com/Latest-Energy-News ... -Data.html
Oil prices were down sharply on Monday after the latest manufacturing data showed that the sector contracted for the 5th straight month in April, ending a 30-month period of expansion. Brent crude was down 1.8% to $79.15 per barrel at 11:30 ET, marking the first time it has slipped below $80 per barrel in nearly four weeks.
Meanwhile, WTI crude lost 2.1% to trade at $75.20 per barrel after the manufacturing report showed that April Manufacturing Purchasing Managers Index (PMI) clocked in at 47.1 percent, 0.8 percentage points higher than the previous month’s reading but the 6th month it came in below 50%. A PMI above 50 represents an expansion when compared with the previous month while a reading under 50 represents a contraction.
Oil prices have also come under pressure from an impending interest rate hike in the current week. The Fed is expected to increase interest rates by another 25 basis points when it meets on May 2-3. Further, the U.S. dollar has been rising against a basket of currencies over the past week, making oil more expensive for other currency holders.
Read more here:
https://oilprice.com/Latest-Energy-News ... -Data.html
Oil prices were down sharply on Monday after the latest manufacturing data showed that the sector contracted for the 5th straight month in April, ending a 30-month period of expansion. Brent crude was down 1.8% to $79.15 per barrel at 11:30 ET, marking the first time it has slipped below $80 per barrel in nearly four weeks.
Meanwhile, WTI crude lost 2.1% to trade at $75.20 per barrel after the manufacturing report showed that April Manufacturing Purchasing Managers Index (PMI) clocked in at 47.1 percent, 0.8 percentage points higher than the previous month’s reading but the 6th month it came in below 50%. A PMI above 50 represents an expansion when compared with the previous month while a reading under 50 represents a contraction.
Oil prices have also come under pressure from an impending interest rate hike in the current week. The Fed is expected to increase interest rates by another 25 basis points when it meets on May 2-3. Further, the U.S. dollar has been rising against a basket of currencies over the past week, making oil more expensive for other currency holders.