WASHINGTON (dpa-AFX) - Oil prices fell on Friday, extending losses to a third straight day, amid concerns about the outlook for demand. Expectations of interest rate cuts by central banks, and hopes that the OPEC+ will extend production cuts into the third quarter helped limit oil's losses.
Data showing a contraction in China's manufacturing sector has added to concerns about the outlook for oil demand.
The latest survey from the National Bureau of Statistics showed China slipped into contraction territory in May, with a manufacturing PMI score of 49.5.
That missed forecasts for a score of 50.5 and was down from 50.4 in April, and it moves beneath the boom-or-bust line of 50 that separates expansion from contraction.
The non-manufacturing PMI came in at 51.1, shy of expectations for 51.5 and down from 51.2 in the previous month. The composite PMI was 51.0 versus forecasts for 51.4 and down from 51.7 a month earlier.
West Texas Intermediate crude oil futures for July ended down by $0.92 at $76.99 a barrel.
Brent crude futures were down $0.71 or 0.85% at $81.17 a barrel a little while ago.
A report from Baker Hughes said the oil rig count in the U.S. dropped by one this week to 496, which is less than 59 rigs a year ago.
Data from the Commerce Department said the personal consumption expenditures (PCE) price index rose by 0.3% for the third straight month in April, matching economist estimates.
Meanwhile, the report said the core PCE price index, which excludes food and energy prices, crept up by 0.2% in April after rising by 0.3% in March. Economists had expected another 0.3% increase.
The annual rates of growth by the PCE price index and the core PCE price index were both unchanged from the previous month at 2.7% and 2.8%, respectively. The readings matched expectations.
The readings on inflation, which are said to be preferred by the Federal Reserve, were included in the Commerce Department's report on personal income and spending.
The Commerce Department said real personal spending, which excludes price changes, edged down by 0.1% in April after climbing by 0.4% in March.
Copyright(c) 2024 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2024 AFX News
