Crude oil contract for March delivery fell by 0.25% to $96.45 on expectation of increase in crude oil inventory.
Energy Information Administration will release oil inventory data tomorrow at 0330 GMT. The inventory is expected to increase by 2.2 million barrels (mb) for the week ended 31st January that will increase total inventory to 0.3602m. Last week also the inventory gained by 6.4 mb. This will be the third sequential increase in stockpile after 7 weeks fall.
Yesterday Institute of Supply Management released Manufacturing PMI that fell to 51.3 from previous 57.0. It further added to falling prices. U.S. the largest consumer of crude oil may withdraw less if growth of manufacturing industry slows down.
Demand for crude oil has already got affected on waning demand from China, the second largest consumer.
At present we may see more bearish bets on this commodity but if U.S. as well as emerging economies continues negative growth then for risk aversion we may see investment in crude oil hedge funds.