Brent crude futures fell below $102 per barrel today over fears that oil demand from China may fall, as the dollar remains strong.
A seven-month low for China’s preliminary purchasing managers index (PMI) reflected slower external demand for Chinese products.
An investment analyst at Singapore’s Phillip Futures, said: “China’s demand for oil will be impacted because the PMI numbers show that the economy is not doing as well as the market had expected.
“The weak PMI and the strong dollar will pressure Brent towards the $100 mark in the near term.”
Front-month Brent futures fell 69 cents to $101.91 per barrel by 0255 GMT, after having dropped more than a dollar in the previous session.
U.S. crude dropped 71 cents to $93.61, extending the previous day’s losses after inventory data suggested the gasoline market was well supplied ahead of the driving season.
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