Investing.com – Crude oil prices fell further in Asia on Monday after a disappointing manufacturing survey from China.
On the New York Mercantile Exchange oil futures for September dipped 0.70% to $46.80 a barrel.
The manufacturing PMIs from Japan, seen at 51.4 in July, came in at 51.2 and for China, the Caixin/Markit final for July dropped to 47.8, well below the 48.3 in the flash estimate. The Australian economy is highly dependent on exports to China.
China is the world’s second largest energy user.
Last week, futures fell sharply on Friday to cap the worst monthly performance since the 2008 global financial crisis as ongoing concerns over a glut in world markets continued to drive down prices.
On the ICE Futures Exchange in London, for September delivery fell to a session low of $51.63 a barrel, a level not seen since January 30, before closing at $52.21, down $1.10, or 2.06%, for the day.
For the week, London-traded Brent futures lost $2.24, or 4.41%, the fifth straight weekly decline. Prices tumbled $11.39, or 18.6%, in July, amid concerns a resumption of Iranian oil exports will add to a global glut.
Iran and six world powers reached a long-awaited nuclear deal in July that would end sanctions on Tehran in exchange for curbs on the country’s disputed nuclear program. Iran reportedly hoards 30 million barrels of oil in its reserves ready for export.
Reports of record high oil exports from Iraq and robust production from Saudi Arabia also contributed to losses.
Global oil production is outpacing demand following a boom in U.S. shale oil production and after a decision by the Organization of Petroleum Exporting Countries last year not to cut production.
Elsewhere, U.S. oil futures fell to the lowest level in more than four months on Friday, after data showed that rigs drilling for oil in the U.S. rose last week, underlining concerns over robust domestic production.
Industry research group Baker Hughes (NYSE:NYSE:NYSE:) said late Friday that the number of rigs drilling for oil in the U.S. increased by five last week to 664, the second straight weekly gain.
Concerns over the health of China’s economy, a broadly stronger U.S. dollar and prospects of higher interest rates in the U.S. later this year also weighed.
In the week ahead, investors will be focusing on Friday’s non-farm payrolls report for July, for fresh indications on the strength of the economy and the timing of a U.S. rate increase.
On Monday, The U.K. is to publish its manufacturing index.
The U.S. is to release data on personal income and expenditure, while the Institute of Supply Management is to release data on manufacturing activity.
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data .
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.