Crude Oil prices fell before the China Manufacturing PMI release. March crude oil contract fell by 0.34% to $97.90.
On 1st February China Federation of Logistic and Purchasing will release Manufacturing Index which is expected to fall to 50.6 from previous 51.0. Falling growth in China expected to reduce demand for crude oil as China is the second largest importer of oil. In January China economic indicators have shown results below expectations that has already discounted oil prices.
U.S. crude oil inventory increased by 6.4 million barrels from previous 1.0 mnb that has pulled down the oil prices on Wednesday but increase in personal consumption provided little support to the commodity today.
High prices with little support of fundamentals made investors bearish. The commodity is expected to fall further as at present price there seems high resistance.
We are expecting that crude oil prices may fall near to $96.40 till the mid of February. Slow growth at emerging markets and negative results of U.S. and China may pressurize oil prices.