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Oil Declines as Economic Data Frustrates Traders

November 1, 2011 at 4:11 by Vladimir Vyun

Oil declined today as the signs of slower economic growth in China and concerns about the situation in Europe caused speculation that demand for fuel will decline.

The optimism, caused by the revealing the plans for rescuing Greece and other indebted nations of the European Union, quickly evaporated and traders still are caution, resulting in sluggish trading. Greek Prime Minister George Papandreou said he’s going to put the bailout plans for Greece to a referendum. The country may face a default in case the referendum would result in negative vote.

China’s Purchasing Manager’s Index declined to 50.4 in October from 51.2 in the month before, while an increase was predicted. The data from the US was also negative as the Chicago PMI also declined. A decline was expected, but only to 59.2, while the index actually fell to 58.4 in October from 60.4 in September.

Brent crude oil fell from $109.44 to $108.90 per barrel today as of 2:54 on ICE, following the drop from $110.14 to $109.19 yesterday.

If you have any questions and comments on the commodities today, use the form below to reply.

2 Responses to “Oil Declines as Economic Data Frustrates Traders”

  1. MK

    Hi, If economy data is so week,what are factors keeping crude still @ above 90$, quite high from it productive cost!
    Regards

    [Reply]

    enivid Reply:

    High demand?

    [Reply]

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