|News||Crude oil declines after China's PMI|
|Analysis||Crude oil dropped today, trimming the weekly gain, after China’s Purchasing Managers’ Index fell to the lowest since February 2009, pointing a possible slowdown in oil demand, offseting the final approval by lawmakers in Greece to the details of the plan with expectations for slowing ISM manufacturing in the United States, the largest oil consumers.|
Light sweet crude oil for August opened at $95.09 a barrel recording the intraday high at $95.11a barrel and the low of $94.51 a barrel and is currently trading around $94.71 a barrel.
The dollar continues its decline as the jitters were eased in the financial markets regarding the debt crisis after the approval of the final vote yesterday in Greece. The USDIX opened today at 74.38 recording the highest at 74.55 and the lowest at 74.18 and is currently trading around 74.27.
Yesterday, the Greek parliament approved the second part of the vote and also passed the bills to enact the measures and provide the strong support for their case in the meeting on Sunday with finance ministers to acquire the fifth tranche of aid. This optimism is generally offsetting all other downside pressures, especially after ignoring the slow manufacturing figures from China.
The Chinese economy showed that the industrial sector slowed more than expectations in June, the purchasing managers’ index recorded 50.9 after market expectations of 51.6, which affirms that their tightening monetary policy is impacting demand on oil from the second largest oil consumer. Also a report today may show US manufacturing also slowed in the month of June, as market expectations are 52.0 and the previous 53.5.
The EIA said on June 23 that it will release a 60 million barrels of oil from strategic reserves over 30 days which will start at the end of this week so that it can make up for Libya’s production and half of which will come from the US Strategic Petroleum Reserve which will keep the downside pressures on oil in the coming period.