Crude dropped 1.6% after China's PMI Manufacturing declined to 53.9 compared to the previous 55.7. The plunge currently witnessed in the sector is predicted to have negative effects on global recovery, specifically since hopes are for China to lift the global economy from the current chaotic state.
The sovereign debt crisis in the euro zone is still dominating markets, despite of the incentive plans offered by governments to reduce the budget deficit; however, fears in the meantime are due to the austerity measures that had been adopted by economies as a way to save the economy.
Yesterday there was a notable plunge in trading levels with the absence of the US and UK in financial markets due to holidays; The US celebrated Memorial Day, while the UK celebrated the Spring Banking Day holiday. The holiday’s effects we clear on crude as it stabilized around $74 per barrel.
As for NYMEX as of 03:58 EST; heating futures fell to record $200.260 per gallon by $0.190; motor gasoline is trading around $202.00 per gallon after plunging by $0.660; whereas natural gasoline gained by $0.049 to record $4.390 per 1000 cubic feet. In London, Brent receded by $0.290 to record $74.360.
Crude opened today around $74.55 recording its highest around $75.12 and lowest around $73.00 per barrel, while currently trading around $73.175 per barrel.