Oil prices extend losses on concerns over demand

  • World
  • Thursday, 01 Jun 2023

NEW YORK, May 31 (Xinhua) -- Crude oil futures prices continued to fall on Wednesday amid concerns over oil demand.

The West Texas Intermediate (WTI) for July delivery decreased by 1.37 U.S. dollars, or 1.97 percent, to settle at 68.09 U.S. dollars a barrel on the New York Mercantile Exchange. Brent crude for July delivery lost 88 cents, or 1.20 percent, to settle at 72.66 U.S. dollars a barrel on the London ICE Futures Exchange.

Weaker macroeconomic and labor market data weighed on investors' sentiment though oil demand has seasonal tailwind in summer.

Chicago purchasing managers' index measuring the performance of the manufacturing and non-manufacturing sector in the Chicago region dropped to 40.4 in May, lower than 48.6 in April and 47 of forecast consensus, according to data issued by the Institute for Supply Management - Chicago on Wednesday.

The potential fallout from the U.S. debt ceiling debacle and rising odds of another Federal Reserve hike in June weighed on oil, according to analysts with U.S. financial research firm Sevens Report Research.

Still, strategists with UBS said investors should return to the oil market as larger inventory draws become more visible in the months ahead.

World average daily oil demand is likely to approach 102 million barrels in June while global daily oil production would fall back to 100 million barrels in the second quarter of 2023 from around 101 million barrels in the first quarter.

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