After disappointing US manufacturing report, global crude oil prices fall

28-Aug-13

The US benchmark futures contract, West Texas Intermediate for delivery in October, closed at US$105.9 a barrel, while Brent North Sea crude for October, traded at US$110.9 a barrel. A US manufacturing report disappointed with the numbers and raised questions about the health of the world's largest energy consumer. Commerce Department reported new orders for US durable manufactured goods plunged 7.3% in July, much sharper than the 5% percent drop expected. However, prices marginally rebounded after US Secretary of state warned that Syria would be held accountable for the "obscene" chemical weapons attack which opposition forces say killed 1,300 people, including children. Unrest in the Middle East, which pumps a third of the world’s oil, has spurred an increase in trading Brent crude.