AFP, Singapore :
Crude prices dived in Asia Monday, with US oil hovering below the key $40 a barrel mark amid deepening concerns about weak Chinese economic growth and global oversupply, analysts said.
US benchmark West Texas Intermediate (WTI) for October delivery fell $1.04 to $39.41 while Brent crude for October eased 91 cents to $44.55 in late-morning trade.
WTI extended losses after briefly dipping to $39.86 on Friday in New York — breaking $40 for the first time in six years-after data showed an increase in US oil rigs despite ample global supplies.
“Soft manufacturing data from China and continued increase in weekly rig count led to the sharp sell-off” in oil prices, said Sanjeev Gupta, head of the Asia-Pacific oil and gas practice at consultancy EY.
The Baker Hughes US oil rig count showed producers in the world’s top crude consumer added two more rigs in the week to August 21, the same number as the previous week, bringing the overall tally of active drilling oil rigs to 674.
A much weaker-than-expected manufacturing report on Friday also added to concerns energy demand is also waning in China.
The Caixin’s Purchasing Managers’ Index came in at 47.1 this month, falling from 47.8 in July and its worst reading since March 2009. A reading below 50 signifies contraction in activity.
Crude prices dived in Asia Monday, with US oil hovering below the key $40 a barrel mark amid deepening concerns about weak Chinese economic growth and global oversupply, analysts said.
US benchmark West Texas Intermediate (WTI) for October delivery fell $1.04 to $39.41 while Brent crude for October eased 91 cents to $44.55 in late-morning trade.
WTI extended losses after briefly dipping to $39.86 on Friday in New York — breaking $40 for the first time in six years-after data showed an increase in US oil rigs despite ample global supplies.
“Soft manufacturing data from China and continued increase in weekly rig count led to the sharp sell-off” in oil prices, said Sanjeev Gupta, head of the Asia-Pacific oil and gas practice at consultancy EY.
The Baker Hughes US oil rig count showed producers in the world’s top crude consumer added two more rigs in the week to August 21, the same number as the previous week, bringing the overall tally of active drilling oil rigs to 674.
A much weaker-than-expected manufacturing report on Friday also added to concerns energy demand is also waning in China.
The Caixin’s Purchasing Managers’ Index came in at 47.1 this month, falling from 47.8 in July and its worst reading since March 2009. A reading below 50 signifies contraction in activity.
