The crude oil futures disappointed investors in Asian trading session on Friday, as it traded lower than expected early in the morning. This slump came as a surprise, as the economic reports released on Thursday by the United States were really good and promising.
The New York Mercantile Exchange saw crude oil futures going down by 0.42 % for the month of April, as it traded at USD 91.67 per barrel. Many experts are blaming the latest PMI number released in the official data by China earlier today for the decreasing demand of oil. As per the figures, the PMI declined from January’s 50.4 mark to 50.1 for the month of February. This was lower than the 50.5 level estimated by the economic analysts for the month. Considering that China is the second biggest consumer of oil in the world, the current PMI figures are not a good indicator of expansion.
Another major contributor to this fall in demand of crude oil can be the slow development in the United States, which is the largest consumer of oil in the world. The reports coming out on Thursday indicated that the U.S. was accumulating 7 million oil barrels every day, which is the highest level reported since the year 1992. The boost in the oil production in Texas and North Dakota has helped the United States to export a good quantity of oil. However, it will seldom alter the prices of oil, since the U.S. continues to be the largest oil consumer.
On the other hand, the ICE Future Exchange witnessed a rally of 0.02 % for Brent delivery for the month of April as it reached a level of USD 111.09 per barrel. This was a positive bounce from the drop seen by the global benchmark in the last two weeks, as it was trading at just USD 8 per barrel.
Coming to other shining commodity, Gold futures saw a surge in Asian market today. The delivery for April, on the New York Mercantile Exchange’s Comex division, rallied by 0.23% to USD 1,581.70 per troy ounce. In U.S. session, Gold closed lower by 0.94% to USD 1,580.70 a troy ounce on Thursday.