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Crude Oil Futures Tumble, End At 1-month Low

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Crude Oil Futures Tumble, End At 1-month Low

Crude oil prices tumbled on Monday and November futures contract settled at their lowest level in nearly a month, on lingering worries about trade and rising concerns about falling energy demand.

Data showing a contraction in China’s manufacturing sector for a fifth straight month raised concerns about outlook for energy demand and weighed on the commodity.

Slightly fading concerns about Middle East tensions and supply shortages thanks to restoration of oil production in Saudi Arabia contributed significantly to oil’s slide.

West Texas Intermediate Crude oil futures for November ended down $1.84, or about 3.3%, at $54.07 a barrel.

Brent crude futures shed $1.16, or 1.9%, at $60.75 a barrel.

On Friday, WTI crude oil futures for November ended down $0.50, or 0.9%, at $55.91 a barrel.

The official data from the National Bureau of Statistics revealed that China’s factory sector continued to contract in September.

Survey data from IHS Markit showed on Monday that China’s manufacturing sector expanded at the fastest pace since early 2018 in September despite ongoing trade disputes with the United States.

The manufacturing PMI climbed to 49.8 from 49.5 a month ago.

The Caixin factory Purchasing Managers’ Index rose to 51.4 in September from 50.4 in August.

In U.S.-China trade related news, Treasury Department spokeswoman Monica Crowley denied reports the Trump administration is considering delisting Chinese companies from U.S. stock exchanges.

“The administration is not contemplating blocking Chinese companies from listing shares on U.S. stock exchanges at this time. We welcome investment in the United States,” she said in a statement.

Crowley’s statement comes on the heels of reports suggesting the administration is contemplating ways to curb U.S. investments in China.

Meanwhile, White House trade adviser Peter Navarro attacked the media reports in an interview with CNBC on Monday, claiming “over half” of a Bloomberg report about potential restrictions was “highly inaccurate or simply flat-out false.”

The material has been provided by InstaForex Company – www.instaforex.com