Oil fell on China and Saudi Arabia
Oil prices fell on Tuesday after China’s HSBC manufacturing PMI fell to 49.2 in March (forecast: 50.5). A reading below the 50-point handle signals contraction of the economic activity. This means that Chinese oil demand will likely decline.
Another negative factor for oil was the news about Saudi Arabia’s production being close to the record maximum of about 10 million barrels of crude oil per day. That is 350,000 bpd above the figure Saudi Arabia gave to OPEC for its February output.
US benchmark West Texas Intermediate crude slid below $47.0o a barrel, while Brent fell to $55.62 a barrel this morning.