Crude oil futures drifted down sharply on Thursday, extending losses to a fourth successive session, amid concerns over outlook for energy demand due to slowing economies and uncertainty about U.S.-China trade deal.
West Texas Intermediate Crude oil futures for December ended down $0.88, or about 1.6%, at $54.18 a barrel.
Brent crude futures ended down $0.40 at $60.21 a barrel on Thursday, after declining 1.6% in the previous session.
On Wednesday, WTI crude oil futures for December ended down $0.48, or 0.9%, at 55.06 a barrel.
Data released by the Energy Information Administration on Wednesday showed U.S. crude stockpiles rose by 5.7 million barrels in the week ended October 25th. That was more than twice the expected jump.
Weak data out of China raised concerns about energy demand outlook. China’s service sector logged weaker growth in October, official survey results from the National Bureau of Statistics showed Thursday.
The non-manufacturing Purchasing Managers’ Index came in at 52.8, down from 53.7 in September. Nonetheless, a reading above 50 indicates expansion in the sector.
The manufacturing PMI fell to 49.3 in October from 49.8 a month ago. The sector has been contracting since May and the reading was the lowest since last February.
The composite output index that covers manufacturing, services and construction, declined to 52.0 in October from 53.1 in the previous month.
The material has been provided by InstaForex Company – www.instaforex.com