Oil prices down in Asian trade
US benchmark West Texas Intermediate (WTI) for December delivery fell 35 cents to $80.19 while Brent crude for December was down 23 cents at $85.63 in afternoon trade.
“The focus right now is on the manufacturing data to be released. We are looking for signs of industrial growth, which will in turn mean greater crude demand,” Daniel Ang, investment analyst at Phillip Futures in Singapore, told AFP.
Markit’s purchasing managers index (PMI) for the eurozone, Germany and the United States are due to be released later Monday, along with those of France, Italy and Spain.
The US Institute of Supply Management is also slated to release its own index for the US manufacturing sector.
China’s official PMI came in at 50.8 in October compared with 51.1 in September, the government said on Saturday, raising concerns about slowing growth in the world’s second-largest economy and top energy consumer.
The index tracks manufacturing activity in China’s factories and workshops and is a closely watched indicator of the health of the economy. A reading above 50 indicates growth.
Singapore’s United Overseas Bank said a stronger US dollar, trading near seven-year highs against the yen, was putting downward pressure on oil prices.
The greenback bought 112.73 yen in afternoon trade compared with $112.35 yen in New York late Friday.
A stronger greenback makes dollar-priced oil expensive for buyers using weaker currencies, denting demand and pushing prices lower.-AFP