Tokyo, May 31 (BNA): Oil prices extended losses early Wednesday as concerns about slowing demand from China, the largest oil importer, after weaker-than-expected economic data offset some positive progress in the US debt ceiling bill.
Brent crude futures for August delivery fell 15 cents to $73.56 a barrel by 0656 GMT, while US West Texas Intermediate crude fell 14 cents to $69.32 a barrel, with earlier gains reversing after Chinese manufacturing data. Reuters reported that both benchmarks fell more than 4% on Tuesday.
The July Brent contract, which expires Wednesday, and the US benchmark were on course for monthly declines of more than 7% and 9%, respectively.
Manufacturing activity in China contracted faster than expected in May due to weaker demand, with the official manufacturing Purchasing Managers’ Index (PMI) falling to 48.8 from 49.2 in April. The result came in later than the expected 49.4.
MI