EGX closes in green notes on June 12    Egypt's President Al-Sisi, Equatorial Guinea's Vice President discuss bilateral cooperation, regional Issues    European automakers shares skid on 'fear of retaliation' from EU tariffs on China EVs    Egypt aims to cut debt service by 30%, lower debt-to-GDP ratio to 80%: Maait    EFG Hermes advises on Saudi Aramco's $11bn secondary offering, EMEA's largest since 2019    Egypt's Higher Education Minister pledges deeper cooperation with BRICS at Kazan Summit    BRICS power emissions hit a record high in Q1    European stocks gain as investors await US inflation, Fed decision    US to widen sanctions on semiconductor sales to Russia    Gaza death toll rises to 37,164, injuries hit 84,832 amid ongoing Israeli attacks    New Development Bank pledges support for Egypt's development goals    Egypt's Water Research, Space Agencies join forces to tackle water challenges    Egypt hosts first New Development Bank international forum in New Administrative Capital    New Zealand excludes farming from carbon pricing plan    Egypt supports development of continental dialogue platform for innovative health sector financing in Africa: Finance Minister    BRICS Skate Cup: Skateboarders from Egypt, 22 nations gather in Russia    Pharaohs Edge Out Burkina Faso in World Cup qualifiers Thriller    Egypt's EDA, Zambia sign collaboration pact    Madinaty Sports Club hosts successful 4th Qadya MMA Championship    Amwal Al Ghad Awards 2024 announces Entrepreneurs of the Year    Egyptian President asks Madbouly to form new government, outlines priorities    Egypt's President assigns Madbouly to form new government    Egypt and Tanzania discuss water cooperation    Grand Egyptian Museum opening: Madbouly reviews final preparations    Madinaty's inaugural Skydiving event boosts sports tourism appeal    Tunisia's President Saied reshuffles cabinet amidst political tension    Instagram Celebrates African Women in 'Made by Africa, Loved by the World' 2024 Campaign    Egypt to build 58 hospitals by '25    Swiss freeze on Russian assets dwindles to $6.36b in '23    Egyptian public, private sectors off on Apr 25 marking Sinai Liberation    Debt swaps could unlock $100b for climate action    Financial literacy becomes extremely important – EGX official    Euro area annual inflation up to 2.9% – Eurostat    BYD، Brazil's Sigma Lithium JV likely    UNESCO celebrates World Arabic Language Day    Motaz Azaiza mural in Manchester tribute to Palestinian journalists    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







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Oil falls below $75 on China demand doubts
Published in Daily News Egypt on 01 - 07 - 2010

LONDON: Oil fell below $75 a barrel on Thursday, beginning the second half of the year on a weak note after falling nearly 5 percent in the first half, as signs of slowing economic growth in China fuelled energy demand doubts.
The pace of manufacturing growth in the world's second largest oil consumer slowed in June as government steps to cool the property market and curb bank lending combined with a faltering global recovery.
US crude for August delivery fell $1.07 to $74.56 a barrel by 1137 GMT, declining for the fourth straight session and extending the 10 percent slide of the second quarter, the first quarterly drop since 2008.
ICE Brent fell 1.17 on Thursday to $73.84.
"I think oil is reflecting general negative commodity market sentiment after weaker-than-expected China PMI data overnight," said Carsten Fritsch, oil analyst at Commerzbank in Frankfurt.
"Weaker equity markets are also weighing on sentiment," he added.
The China data, and Moody's decision on Wednesday to put Spain's credit ratings under review, got broader markets off to a weak start for the new quarter. European equities fell 1 percent, Japanese stocks slid to a seven-month low and China's to a 15-month trough.
China's official purchasing managers' index (PMI) fell to a weaker-than-expected 52.1 in June, the lowest since February, from 53.9 in May. The indicator remained above the 50 threshold that indicates an expansion.
Adding to negative sentiment on demand, US gasoline stockpiles posted surprise gains last week, government statistics showed on Wednesday, raising doubts about the speed of consumption recovery in the world's top consumer.
Crude stockpiles fell 2 million barrels in the week to June 25, compared with expectations for a decline of 900,000 barrels. Cushing, Oklahoma, crude supplies shed 795,000 barrels to 36 million barrels.
The recent slip from record high storage at the Cushing hub has helped narrow the price spread between the front-month and near-month US crude contracts.
The spread narrowed to 55 cents on Thursday, from $1.27 on Wednesday, which could signal an improvement in near-term demand.
Traders were also looking to the nation's weekly jobless claims later on Thursday and June's employment report on Friday for further indications about the direction of the economy in the world's largest fuel consumer.
"The data in the next two days is particularly important and has the potential to move oil prices," said David Moore, an analyst at the Commonwealth Bank of Australia.
Hurricane Alex drenched the Texas-Mexico border on Thursday as the powerful storm hit Mexico's Gulf coast, spawning tornadoes and flooding towns, but it spared US oil wells.
"Hurricane Alex made landfall and didn't have an impact on oil production. I think some people are taking profits after prices rose on possible fears it would hit output," Fritsch said. —Additional reporting by Alejandro Barbajosa


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