Oil Sinks, Pressured by China, OPEC and Warmer U.S. Weather

Reuters

NEW YORK, Feb 1 (Reuters) - U.S. crude oil prices slid as much as 7 percent on Monday, pressured by weak economic data from China, a U.S. forecast for mild weather and growing doubts that OPEC and non-OPEC producers would come together to reduce the swelling global supply glut.

Chinese manufacturing contracted in January at the fastest pace since 2012, adding to worries about energy demand from the world's largest energy consumer.

"China is the last standing consumer of oil outside of the U.S. The problem is that everyone is relying on them," said Carl Larry, director of business development at Frost & Sullivan in Houston.

"As long as we keep in this scenario where China is the only real consumer to pick up the pace, we're going to see moves lower every time China has an issue with their economy."

A mild U.S. winter has also dented demand for oil. Forecasts for warm temperatures through mid-February sent U.S. New York Harbor heating oil futures down as much as 5 percent.

U.S. West Texas Intermediate (WTI) slid to its biggest daily loss in five months, down 6.9 percent to an intraday low of $31.29 in volatile afternoon trading. That was still 19.5 percent higher than the more than 12-year low of $26.19 hit in mid-January.

The contract eventually settled at $31.62, down 5.9 percent or $2.


123

View Full Article

Copyright 2016 Thomson Reuters. Click for Restrictions.

WHAT DO YOU THINK?

Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE



Most Popular Articles

From the Career Center
Jobs that may interest you
US Oklahoma City: Account Rep, Bus Dev - Sr. Account Rep, Bus Dev
Expertise: Business Development|Sales
Location: Oklahoma City, OK
 
Outside Sales Representative
Expertise: Business Development|Sales
Location: Durango, CO
 
Vice President of Sales - Protective Coatings
Expertise: Sales
Location: Pennsylvania, PA
 
search for more jobs

Brent Crude Oil : $49.67/BBL 1.26%
Light Crude Oil : $47.33/BBL 1.19%
Natural Gas : $2.85/MMBtu 1.78%
Updated in last 24 hours