Oil Prices Drop on China Manufacturing Slowdown and Fed Comments

U.S. crude-oil futures slid on Thursday, as the market grappled with weak manufacturing-activity figures from China, an increase in U.S. oil supply and signals from the Federal Reserve that a reduction in monetary stimulus is in sight.

Crude for July delivery CLN3 -2.79% lost $2.54, or 2.5%, to $95.70 a barrel.

Further risk aversion on Thursday in North American trade and a surge in the U.S. dollar have created “a perfect storm of bearishness” for crude-oil futures, said Matt Smith, a commodity analyst at Schneider Electric.

U.S. jobless claims for the week ended June 15 rose by 18,000 to a seasonally adjusted 354,000, more than expectations of a rise to 340,000. The weaker-than-expected claims data gave more credence for the oil selloff, said Smith. “I think the jobless claims were really the cherry on top of things,” he said.

via Marketwatch

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