Oil prices slip below $117 on China production data

Oil dipped below US$95 (S$116.50) per barrel on Friday after China reported manufacturing rose at the slowest pace in over two years in June, pointing to a possible slowdown in energy demand.

Oil prices slip below $117 on China production data

Benchmark crude for August delivery dipped $1.06 to $94.38 per barrel in late Bangkok time on the New York Mercantile Exchange after rising $4.16 per barrel over the previous two days. The contract settled at $95.42 per barrel on Thursday.

In London, Brent crude for August delivery was down $1.43 cents to $111.05 a barrel on the ICE Futures exchange.

The China Federation of Logistics and Purchasing said its monthly purchasing managers index fell to 50.9 in June, the slowest pace in 28 months. The report said the trend likely augurs a further slowdown in growth brought on by inflation-fighting curbs on credit.

The price of crude eased back from Thursday, when lawmakers in Greece approved final details of a plan that will bring sweeping financial reform to its beleaguered economy. That eased concerns about a spreading financial crisis in Europe, resulting in a strengthening euro against the dollar. That, in turn, gave oil a boost, since it tends to rise as the dollar falls and makes crude barrels cheaper for investors holding foreign money.

Crude has dropped from near $115 early last month amid concerns about slowing global demand.

AP

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