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Crude Oil Down as Manufacturing in Europe & China Slows

April 23, 2012 at 17:21 by Vladimir Vyun

Crude oil fell today after reports showed that manufacturing in China and Europe slowed, meaning that demand for fuel may decline. Traders were also selling riskier assets on concerns about the future of the eurozone.

China’s Purchasing Managers’ Index rose from 48.3 in March to 49.1 in April. The increase of the index is a good sign, but the value is still below 50.0, indicating a contraction. Nation’s manufacturing declined for the sixth month. Analysts say that China’s demand for oil decreased.

Manufacturing in the eurozone also slowed. The flash PMI was down to 46.0 this month from 47.7 in the month before, while specialists predicted an increase. Concerns about the outcome of the presidential elections in France put additional pressure on commodities.

June for delivery of crude oil fell as much as $1.58 (1.5 percent) to $102.30 per barrel by 12:54 on NYMEX. Brent was down from $118.53 to $118.08 as of 17:18 GMT on ICE today after it fell earlier to $117.21.

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