Oil prices fell today after disappointing manufacturing data from the US that overshadowed positive Chinese manufacturing data that had pushed prices yesterday.
Brent futures declined by 27 cents to $110.65 per barrel, breaking its 200-day moving average of trading above $111, while US crude fell by 39 cents to $88.70 per barrel, reports Reuters.
According to the Institute for Supply Management’s (Ism) data, American factory activity index fell to its lowest figure since July 2009, due to fiscal the crisis and Hurricane Sandy impact.
The latest proposal by Republicans in connection to fiscal cliff has been turned down by the White House, citing that it doesn’t comply with Obama’s thoughts.
Analysts are expecting that the concerns regarding the negotiations to bail out the US from looming fiscal cliff would continue through December as well, thus weakening the data further. The tensions prevailing in the Middle East, however, helped oil prices manage a slight decline.
Israel’s latest announcement that it would expand its West Bank and East Jerusalem settlements and the UN’s decision to withdraw non-essential staff from conflict-ridden Syria added to the supply worries from the region.
Image: The White House dismissed proposal by congressional Republicans over tax reforms and spending cuts. Photo courtesy of Matt H. Wade.