FX & CFD trading involves significant risk
The cost of oil has dropped significantly, while continuing its yesterday's fall, and fall below $ 101, which was due to concerns over a slowdown in demand and the adequacy of reserves, as well as plans for the Federal Reserve to reduce the amount of their incentive programs.
Recall that yesterday the oil showed the greatest drop-session on news the Federal Reserve and weak manufacturing data from China, which put additional pressure. According to the report, this month the manufacturing purchasing managers' index fell to 48.3, compared with a final reading in May at 49.2. It is worth noting that the index is now at its lowest level in nine months. Studies have also found that the production index for the manufacturing sector fell in June to the level of 48.8 from 50.7, while reaching the lowest level in eight months. Add that employment in this sector has also declined at a faster pace. Meanwhile, the rate of decline has slowed in purchase prices and selling prices for the products continued a downward trend, with the rate accelerating its fall compared to the previous month.
Experts note that the slowdown in the manufacturing sector in China, of course, assumes that the growth in demand for oil in one of the world's largest consumer of oil will slow down.
However, prices gain some support from concerns about potential supply disruptions in the Middle East, and confrontations in Syria that threatens to engulf neighboring countries.
The cost of the July futures on U.S. light crude oil WTI (Light Sweet Crude Oil) fell to 93.66 dollars a barrel on the New York Mercantile Exchange.
August futures price for North Sea Brent crude oil mixture fell by $ 1.77 to $ 100.32 a barrel on the London exchange ICE Futures Europe.
All posted material is a marketing communication solely for informational purposes and reliance on this may lead to loss. Past performance is not a reliable indicator of future results. Please read our full disclaimer.