Oil Falls below $88 as China Economy Weakens

Oil fell below $88 a barrel Wednesday in Asia as China’s manufacturing stayed weak and hopes dimmed the Federal Reserve will announce a further loosening of monetary policy to boost the flagging U.S. economy.

Benchmark crude for September delivery was down 15 cents at $87.91 a barrel at midday Bangkok time in electronic trading on the New York Mercantile Exchange. The contract lost $1.72 to settle at $88.06 in New York on Tuesday.

Brent crude was down 38 cents at $104.54 on the ICE futures exchange in London.

Data from China, the world’s No. 2 crude consumer, showed that manufacturing slowed in July as government efforts to boost the economy couldn’t completely offset weak overseas demand for exports.

via ABC News

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza