Crude Oil Price Update-Futures Fall On News of Slowdown in Global Economy

Oil futures fell for a second day after reports showed that the number of new jobs added in the US declined, crude stockpiles increased and global manufacturing slowed down. WTI crude futures fell by 0.50 percent to USD $ 99.79 a barrel. Brent crude futures fell by 0.30 percent to USD $ 114.19 a barrel.

The American Petroleum Institute (API) stated that crude stockpiles in the US increased by 3.5 million barrels to 371.6 million barrels last week. Moreover, the API also stated that oil imports in the US rose by 29 percent to 9.9 million barrels last week.

In May, employment in the US increased by 38,000, which is the lowest increase in employment since September 2010. Furthermore, the US Institute for Supply Management’s factory index fell to 53.5 in May, down from its level of 60.4 in April. Also, a purchasing managers index for China hinted towards the slowest expansionary growth in nine months. Russia’s purchase index signified slow growth too, while reports from Poland and Hungary also stated a slowdown in the manufacturing sector. This series of news increased speculation about the global demand of oil falling, which led to the fall in the price of oil futures.