ISLAMABAD
Crude oil prices extended their losing spree for the third day after disappointing manufacturing data from China and a strong US dollar kept the market under pressure on Wednesday.
As of 1340 hours GMT, Brent, the international benchmark for two-thirds of the world’s oil, shed $0.86 (-1.17 percent) to reach $72.68. The West Texas Intermediate (WTI), the main oil benchmark for North America, went down by $0.91 (-1.31 percent) to $68.55.
WTI crude oil futures sank amid concerns about opposition to the U.S debt ceiling deal. WTI and Brent were on track to post a seventh month of monthly declines of more than 9% and 11%, respectively.
The price of Russian Sokol decreased by $3.09 (-4.71 percent) to $62.53. Arab Light prices witnessed a decrease of $2.82 (-3.64 percent) to reach $74.74 a barrel.
The price for Opec Basket decreased by $0.06 (-0.08 percent) to $76.88. The OPEC Reference Basket of Crudes (ORB) is made up of Saharan Blend, Girassol, Djeno, Zafiro, Rabi Light, Iran Heavy, Basra Light, Kuwait Export, Es Sider, Bonny Light, Arab Light, Murban and Merey.
Fresh macroeconomic data out of China released early on Wednesday weighed on market sentiment. China’s purchasing managers’ index (PMI) dropped in May to a five-month low of 48.8, pointing to a sharper-than-expected contraction in factory activity. Manufacturing activity was below estimates for a second consecutive month, raising again concerns about oil demand in the world’s top crude importer.
On the other hand, OPEC+ member states are sending mixed signals before their meeting this Sunday and this is keeping the oil markets on the edge. The oil companies have been restarting operations amid slowing wildfires in Canada’s most oil-prolific province Alberta, with at least 90,000 barrels per day of the 400,000 barrels per day of previously shut-in production now back.
