Oil dropped for the second day in a row amid the weak data from manufacturing sectors in major global economies, in addition to the increase in the U.S. crude oil inventories to the highest level in a month.
Crude oil futures July settlement opened today at $99.79 a barrel, recording an intraday high so far at $100.22 and a low of $99.25 a barrel and is currently trading around $99.62 with a decrease of $0.67 or by 0.67% a barrel.
At the end of yesterday’s trading prices closed with a decrease of $2.41 or by 2.35%, ending trading at $100.29 a barrel.
The American petroleum institute report, which was issued yesterday, showed an increase in the crude oil inventories by 3.5 million barrels last week to reach 371.6 million barrels, along with the increase in the motors fuel inventories last week by 1.5 million barrels.
The report also noted the rising fears in the markets about the low demand levels especially after a series of economic fundamentals, which showed a sluggish pace in the growth of both the U.S. and China’s (the first and second largest consumers of energy in the world) manufacturing sectors, as well as the euro zone.
The ADP report which was released yesterday showed a weakness in the labor market, and it showed that about 38 thousand jobs were added in May, which was well below expectations, indicating that the monthly jobs report which will be issued tomorrow will not be good either.
While the EIA’s report is expected to be released today after it was postponed, as markets were absent last Monday, and is expected to show a decrease in the inventory by 1.6 million barrels in the previous week.