Weak economic data from Europe and China increase in US crude stockpiles pull down oil prices

24-Feb-12

New York's main contract, light sweet crude for delivery in April, dipped by about half a dollar to US$105.8, an d Brent North Sea crude for April delivery dipped to US$122.70. Oil prices were lower in Asian trade Thursday, weighed by weak economic data from Europe and China, as well as an increase in US crude stockpiles indicating faltering demand, as per economictimes. "Manufacturing data from China and parts of Europe will have reminded many that clear skies are not forecast anytime soon. Chances have grown that the eurozone will slip into recession taking other casualties with it, as per IG Markets Singapore. Manufacturing activity in China continued to contract in February as export orders weakened, in a further sign that the eurozone crisis and US weakness are impacting demand. A report by American Petroleum Institute (API) that US oil inventories rose 3.55 mln barrels last week, indicatied weakening demand in the world's top oil consumer.