|News||Crude dropped below $103.00|
|Analysis||Crude oil declines for the fifth session neglecting positive factors that could help it to rise, as China’s manufacturing rose significantly last month showing that demand may improve from the world’s second largest oil consumer.|
Crude oil opened today’s session at $103.30 to reach a high of $103.56 and a low of $102.81, where it is currently trading around $102.94 a barrel.
It seems that global efforts to halt the general rally for crude are efficient and would bring crude back to reasonable levels, as crude continued the downside wave this week despite the optimism that covered financial markets after Euro finance minister agreed to raise the firepower for lending funds.
Also, China’s good data couldn’t help crude and prevent it from declining despite how the data is important especially for crude as it is the world’s second largest oil consumer, and improving Chinese economy will increase demands on it.
China ‘s PMI manufacturing rose to a one-year high in March at 53.1 from 51.0 in February, lowering the chances for additional monetary easing by the central bank as the economy may witness a soft landing.
Dear reader, it seems that global efforts which been made to hold down the general upside rally for crude started to affect the commodity now, as we can see the bearish bias for crude despite other positive factors not just China but other positive factors as well.
Although, Obama said on Friday that more sanctions may be implemented on Iran in the coming period as the world supplies are sufficient to proceed with new sanctions against Iran, but no strong upside rebound has been seen on the commodity.
As production from the Organization of Petroleum Exporting Countries (OPEC) increased 110,000 barrels, to an average 31.22 million barrels a day in March from a revised 31.11 million in February, according to the survey of oil companies, producers and analysts. On the other hand, Iranian production fell to the lowest level in almost 10 years.
We can see balanced factors that are affecting crude at the current time, but being at these high levels beside global efforts to push crude downwards is a fact we have to look at, which will bring crude back to normal levels sooner or later. But the commodity will get through heavy volatility at the coming period.