ALBAWABA – Oil prices fell $1.29 and $1.28 on the barrel of Brent and West Texas Intermediate (WTI) crude futures for August, respectively, on Wednesday, having both fallen more than 4 percent on Tuesday, Reuters reported.
Concerns over China’s accelerated manufacturing activity in May, against weakening demand, in addition to a rising United States (US) dollar, weighed on the oil market.
Brent crude futures for August delivery were down 1.75 percent, to $72.42 a barrel and WTI crude futures fell 1.84 percent, to $68.18 a barrel, according to Reuters.
China's official manufacturing purchasing managers' index (PMI) slipped in May to 48.8, from 49.2 in April. The outcome lagged a forecast of 49.4, as reported by Reuters.
Meanwhile, the US dollar climbed to its highest level in over two months, making commodities more expensive for buyers holding other currencies.
The US dollar index, measuring the greenback against six major currencies, was bolstered by cooling European inflation and progress on the US debt ceiling crisis.
