Brent crude drops below $60/barrel on demand concerns
ICE October Brent crude was down $1.82 to settle at $59.48/barrel on Wednesday. September (NYMEX) crude was also down $1.87 to settle at $55.23/barrel on Wednesday.
Weaker global economic outlook added further pressure on prices, feeding worries about demand. China’s industrial output growth was down to 4.8% in July compared to 6.3% in June. The reading indicated the weakest growth in the country’s industrial production since 2002 amid trade war fears.
Eurozone’s July manufacturing PMI came in at 46.5, the fastest rate of contraction in operating conditions since December 2012. July marked the sixth consecutive month that the PMI was below 50, which represents contraction.
These were linked to global trade tensions, slowing automotive sector and rising political uncertainties.
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