Crude oil prices have fallen following weak Chinese manufacturing data.
Brent slipped 13 cents and traded at $37.09 a barrel, while the US West Texas Intermediate (WTI) crude CLc1 dropped 9 cents at $36.67 per barrel, Reuters reported.
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Initially oil futures were on course for recovery, but later dropped as data highlighted a fall in China’s national rail freight volumes in 2015.
San Francisco Fed President John Williams told CNBC: "It’s important, in thinking about the Chinese data, to realise that China is undergoing a pretty significant pivot in terms of slower growth… and also a pivot away from manufacturing and more towards consumer spending."
Oil producers are not willing to reduce output, which is leading to a surplus of crude in the market adding pressure on the prices. The prices have dropped by two-thirds since mid-2014.
ANZ told the news agency that the oversupply situation will worsen in 2016 due to tensions between Saudi Arabia and Iran.
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By GlobalDataTraders are watching for storage data to be released by American Petroleum Institute.
After the US Government lifted a 40-year old ban on the country’s crude exports in December 2015, several companies are preparing to start export soon.
Image: The US WTI crude CLc1 edged down 9 cents at $36.67 per barrel. Photo: courtesy of Stuart Miles/ FreeDigitalPhotos.net.
