Prices for Brent crude oil fell slightly, due to the strengthening of the US dollar as well as concerns about the global oversupply. Meanwhile, the decline in the price of WTI crude oil is constrained by strong economic data in the USA.
Falling prices also associated with poor statistics on China. As it became known, in March manufacturing activity in China fell to 11-month low, as new orders declined. This suggests a weakening of the second largest economy in the world, which is likely to require easing to support growth. PMI PMI for the manufacturing of China from HSBC fell to 49.2 in March, which is below the mark of 50 points separating the increase in activity from the recession. Economists had forecast that the figure will be 50.5, that is, will be slightly weaker than in February, when the final PMI index was 50.7.
In addition, the pressure on the oil market continues to provide the words oil minister of Saudi Arabia, Ali al-Naimi that the country will produce 10 million barrels per day.
Market participants are also waiting for the publication of a report on energy reserves in the US last week. According to experts, the volume of oil reserves increased at the end of the 11th week in a row - to 4.75 million barrels. US crude stocks the previous week reached 458.5 million barrels - the maximum since the beginning of tracking this data by the Ministry of Energy in August 1982. "The market is starting to focus on data about the availability of facilities for the storage of oil, - analyst CMC Markets Michael McCarthy. - It is believed that the reduction in storage capacity over time takes its toll on production volumes."
"It is not yet started the summer driving season in the United States, the demand for fuel is reduced, and reserves in the country are growing," - said a senior analyst at Price Futures Group Phil Flynn.
May futures for US light crude oil WTI (Light Sweet Crude Oil) dropped to 47.35 dollars per barrel on the New York Mercantile Exchange.
May futures price for North Sea Brent crude oil mix fell 41 cents to 55.31 dollars a barrel on the London Stock Exchange ICE Futures Europe.