Crude oil futures rise to 7-day high ahead of U.S. supply data

                  Crude oil futures extended the previous session’s gains to hit a seven-day high on Wednesday, as investors looked ahead to closely-watched weekly supply data on U.S. stockpiles of crude and refined products from the U.S. Energy Information Administration later in the day.

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On the New York Mercantile Exchange, light sweet crude futures for delivery in June traded at USD89.77 a barrel during European morning trade, up 0.65% on the day. 

New York-traded oil rose by as much as 0.8% earlier in the session to hit a daily high of USD89.86 a barrel, the strongest level since April 15.

Oil traders awaited data from the U.S. government on oil and fuel supplies later in the day to gauge the strength of demand from the world’s largest oil consumer.

The report was expected to show that U.S. crude oil stockpiles increased by 1.5 million barrels last week, while gasoline inventories were forecast to fall by 0.2 million barrels.

After markets closed Tuesday, the American Petroleum Institute, an industry group, said that U.S. crude inventories fell by 0.9 million barrels last week, confounding expectations for an increase of 1.6 million barrels.

Gasoline stocks dropped 2.7 million barrels, defying expectations for a 0.5 million barrel increase.

The U.S. is the world’s biggest oil consuming country, responsible for almost 22% of global oil demand. 

Elsewhere, on the ICE Futures Exchange, Brent oil futures for June delivery rose 0.5% to trade at USD100.84 a barrel, with the spread between the Brent and crude contracts standing at USD11.07 a barrel.

The European benchmark has been under heavy selling pressure in recent sessions, amid growing concerns over the euro zone’s economic outlook. 

Wall Street investment bank Goldman Sachs cut its three-month outlook for Brent to USD100 a barrel from USD110 and lowered its 2013 forecast to USD105 from USD110, citing concerns over Chinese oil demand prospects. - investing.com

Crude ignores U.S. home sales, gains on G20 green light on Japan easing

              Crude Oil prices rose on Monday after investors shrugged off disappointing housing data in the U.S. and applauded a G20 decision to voice no opposition to Japan's monetary easing measures.

On the New York Mercantile Exchange, light sweet crude futures for delivery in June traded up 0.91% at USD89.07 a barrel on Monday, off from a session high of USD89.42 and up from an earlier session low of USD87.72.

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Japan has rolled out massive monetary stimulus measures to steer the country away from deflationary decline and more towards growth, though G20 officials recently said they did not oppose such measures.

Monetary stimulus tools tend to weaken currencies, though industrialized nations said they won't oppose Japan's policies after concluding the country is not easing policy to give itself an unfair advantage in global trade markets.

Crude Oil Range Bound Ahead Of Chinese Data

                     Crude oil is trading at 88.69 up by 42 cents as traders await tomorrow’s HSBC Chinese PMI data. Last week disappointing Chinese data sparked a global commodities sell off seeing gold tumbled the most in 30 years while crude oil fell close to $6.00 in a single day. Crude oil climbed back above $88 per barrel, as traders mulled the prospects for an output cut from the OPEC Countries after a recent slump in prices left oil with a loss of almost 4% on the week.

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Even after posting the biggest gain since March 26, a decline in oil prices is expected to carry on throughout the week amid lingering worries about higher crude supplies in the United States and signs of lower global demand. Most importantly, the trading sentiment towards commodities and energy precisely was strongly rippled last week by a round of downbeat projections for global oil demand, with lower growth for 2013 predicted by the IEA, EIA and the OPEC.

The International Monetary Fund trimmed its global economic growth forecast for 2013. The group has cut growth in the U.S., the world`s top oil consumer to 1.9 percent from 2 percent. China, the world`s second-top consumer, was cut to 8 percent from 8.2 percent.

Oil falls despite Beige Book report

                      Crude Oil futures traded lower in the early part of Thursday’s Asian despite some decent comments in the Federal Reserve’s Beige Book report published Wednesday. 

On the New York Mercantile Exchange, light, sweet crude futures for June delivery dropped 0.53% to USD86.50 per barrel in Asian trading Thursday after sliding 2.24% to USD87.04 a barrel on Wednesday in the U.S. 

Crude Oil and other riskier assets such as U.S. stocks plunged after the International Monetary Fund pared its outlook for global economic growth this year. 

On Wednesday, the IMF trimmed its 2013 world economic growth forecast to 3.3%, down from a January projection of 3.5%, while the multilateral lending institution's 2014 growth forecast fell to 4.0% from 4.1%. 

Later Wednesday, the Fed’s Beige Book report, which surveys the central bank’s 12 regional districts, indicated those regions have seen modest economic improvement since late February. 

Growth and Demand Outlooks Weigh On Crude Oil

             Crude oil continues its decline this morning trading at 86.75 down by 23 cents as growth and recovery downgrades weigh heavily on the commodity. U.S. crude futures for May delivery closed down by $2.04 at $86.68 a barrel, down by 2.3% on Wednesday. Crude prices were down on concerns over weak global oil demand after the IMF cut its global growth forecast to 3.3%. The International Energy Agency said that falling crude prices was evidence that the oil market is well supplied, putting additional pressure on prices. However, crude inventories unexpectedly fell by 1.2M which prevented further downside in prices.

Oil prices have fallen almost 7 percent in the last five days on expectations of sluggish demand from the U.S. and China, the world’s two biggest economies. The price of Brent crude oil has tumbled 18 percent from a peak of $118 a barrel in February to below $98 this week. Weaker-than-expected economic data from the U.S. and China over the past week have heightened concerns that the global economic outlook is not as strong as many expected just a couple of months ago. But the fall in oil prices provides a silver lining, say analysts. Yesterday the US Fed Reserve released its “Beige Book” which reviews the state of the US economy and is a guide for the FOMC. The assessment released Wednesday said overall activity is growing at a moderate pace, which is better than the report six weeks ago in which the economy was growing at a “modest to moderate” pace. According to the report, most of the nation saw increases in manufacturing, though the labor market was either unchanged or improved slightly. There were reports of hiring in manufacturing, residential construction, information technology and professional services.

Oil’s fall comes as part of a wider commodities rout triggered by data released Monday showing growth in China, the world’s second-largest oil consumer, had slowed unexpectedly in the first three months of 2013.Brent crude futures for June delivery hit a low of $96.75 before paring losses to trade at $97.32 early on Wednesday, down 37 cents. Brent stretched its losses into a seventh session – its longest losing streak since October last year.

Oil prices were also under pressure given risk of political uncertainty in the euro zone, where Italy’s divided parliament begins voting for a new state president on Thursday, a crucial step towards resolving the stalemate since the inconclusive election in February and to carry on with fiscal reforms.Investors seemed to shrug off news of Shell declaring force majeure on Nigerian Bonny Light crude oil exports. The company said it was shutting down the 150,000-barrel-per-day Nembe Creek pipeline in Nigeria for repairs.The stronger US dollar is also weighing on prices as equity markets fell around the globe yesterday, traders moved to the safety of the US dollar.

Natural gas prices also eased to trade at 4.189 giving up 19 pips this morning as the dollar strengthened as traders sold off to book profits, with natural gas breaking above the 4.20 mark activating sell orders. U.S. natural gas ended higher as chilly weather forecast boosted the heating demand and supported prices. Inventories today are expected to be positive which could push prices down. However prices are likely to move in a range before the data. - FxEmpire

Oil falls after IMF pares U.S. GDP estimate

                  Crude Oil futures are trading to the downside in the early part of Friday’s Asian session after being weighed by down yet another concerning data point. 

On the New York Mercantile Exchange, light, sweet crude futures for May delivery are off 0.11% at USD93.41 per barrel in Asian trading Friday, perhaps indicating that traders are not overly impressed with the U.S. weekly jobless claims report. 

In U.S. economic news out Thursday, initial claims for jobless benefits fell to 346,000 last week from 388,000 in the previous week. Economists expected a reading of 360,000 new claims. The less volatile four-week moving average rose to 358,000 from 355,000. The U.S. is the world’s largest oil consumer. 

What may be weighing on oil is the International Monetary Fund’s World Economic Outlook, in which it pared estimate for U.S. GDP growth this year to 1.7% from a previous estimate of 2%. The IMF also cut its estimate for global growth to 3.4% from 3.5%. 

Traders Selling Brent and Crude Oil Spreads

                          This morning WTI crude oil is trading at 93.61 adding 25 cents since the market opened. West Texas Intermediate oil traded near the highest level in almost a week. U.S. crude stockpiles probably increased from the largest in more than two decades, a Bloomberg News survey showed before a government report.

Yesterday, crude oil prices closed higher, lifted by gains in gasoline futures and strong selling of the spread between Brent crude and US crude. Brent’s premium to US West Texas Intermediate futures closed at $11.3 per barrel, after narrowing to just over $11 in afternoon trade, the lowest level since June.

Venezuela’s production of crude and natural gas liquids has stabilized at 3.12million barrels per day after state oil company PDVSA halted a decline in output from the OPEC nation’s second-most productive region, Oil Minister Rafael Ramirez said in an interview on Monday. South Sudan will start marketing crude from the end of May after resuming oil production on Saturday, its oil minister said on Monday now that the two Sudan’s have finally reached agreements.

Brazil’s oil regulator, the ANP, said yesterday that it authorized Chevron to restart output from an offshore oil field more than a year after a November 2011 spill forced the No. 2 U.S. oil company to stop Brazilian production.

Crude Oil slightly higher, though looking for catalysts

             Crude Oil futures are trading slightly higher in Asia Tuesday, though catalysts to really move crude significantly in one direction or the other appear to be on short supply. 

On the New York Mercantile Exchange, light, sweet crude futures for May delivery rose 0.07% to USD93.42 per barrel in Asian trading Tuesday after settling 0.37% at USD93.04 a barrel on Monday in the U.S. 

The Bank of Japan’s massive new monetary easing program was seen as the catalyst to lift oil higher Monday. The Bank of Japan conducted its first government bond purchasing operation early Monday when it bought JPY1.2 trillion in Japanese government debt maturing in five years or more. 

Elsewhere, Brazil announced it will allow Chevron to resume oil production. The Brazilian government halted Chevron’s activities there after a small 2011 spill at the Frade Field. Chevron is the second-largest U.S. oil company. Brazil is vying with OPEC member for the title of South America’s largest oil producer. 

Oil inches higher as Asia digest U.S. jobs report

             CrudeOil futures are trading slightly higher in the early part of Monday’s Asian session as traders in the region take their turn digesting the dismal U.S. March jobs report delivered last Friday. 

On the New York Mercantile Exchange, light, sweet crude futures for May delivery rose 0.11% to USD92.81 per barrel in Asian trading Monday after dropping 0.25% Friday to settle the week at USD93.02 a barrel. 

Oil fell after the U.S. Department of Labor said the world’s largest economy added 88,000 jobs last month, the smallest increase since last June and far below forecasts for an increase of 200,000. That report also showed that the unemployment rate ticked down to 7.6% from 7.7% in February, but that decline was by virtue of a plummeting rate of participation in the U.S. labor market. 

The participation rate fell to 63.3%, the lowest level since 1979, indicating that some Americans are simply giving up on their job searches. 

As the U.S. is the world’s largest oil consumer, oil futures often take their cues from economic data there, particularly the jobs data. Speaking of economic data, traders will now turn their attention to China’s CPI and PPI data due out later today. China is the world’s second-largest oil consumer. 

Elsewhere, South Sudan restarted oil production following a bitter 15-month spat with Sudan. South Sudan became an independent country in 2011 and has the ability to pump about 352,500 barrels per day. 

Later this week, Chevron, the second-largest U.S. oil company will provide investors with an interim update on its quarterly results before reporting those results in full later this month. In 2012, Chevron had a reserve replacement ratio of 112%. 

Meanwhile, Brent crude for May delivery added 0.10% to USD104.45 per barrel on the ICE Futures Exchange. - investing.com

Crude Oil and Natural Gas Trading In The Green

                                             WTI crude oil closed up 24 cents at $96.58 a barrel, up by 0.25% yesterday. Crude oil futures staged a modest rebound from earlier losses, clawing back above $96 per barrel to extend gains for the fourth session in a row, as recent signs of economic recovery bode well for demand prospects. Crude remains flat after the Asian session today. Crude prices were supported on optimism that US economy is recovering which would improve the demand prospects for crude. However the upside was limited due to a stronger dollar which is trading new a record high of 83.40 this morning and higher inventories which came at 3.3M. The U.S. Energy Information Administration reported a climb in crude supplies that was about double market expectations. Crude supplies rose 3.3 million barrels for the week ended March 22. Analysts expected a 1.6 million-barrel climb. Motor gasoline supplies fell by 1.6 million barrels, matching analysts’ expectations, while distillate stockpiles declined by 4.5 million barrels, compared with forecasts for a decline of 700,000 barrels in distillate supplies.

Traders can expect crude prices to go slightly up as loose monetary policies by US and Japan is likely to support prices. Assurances from the new head of the Bank of Japan that he would push through more stimulus and new programs at next week’s meeting helped support oil prices.

Japan’s oil imports from Iran rose 15.9 percent in February from a year ago to the highest in eleven months, customs cleared data showed on Thursday, a rare increase from one of the major buyers of crude from sanctions-hit Iran.

Crude oil futures higher, focus on Cyprus

                 Crude oil futures were higher on Tuesday, as optimism following news of bailout deal for Cyprus continued to support sentiment, although comments by Eurogroup head Jeroen Dijsselbloem limited gains. 

On the New York Mercantile Exchange, light sweet crude futures for delivery in May traded at USD94.98 a barrel during European morning trade, up 0.18%. 

Dijsselbloem said on Monday that the rescue program agreed for Cyprus represents a new model for resolving euro zone banking problems and other countries may have to restructure their banking sectors. 

Crude Oil Steady As Demand Increases

                                   This morning crude oil is trading at 93.28 giving back 23 cents. WTI Crude oil traded directionless in the midst of countervailing forces. Looming financial meltdown in Cyprus enacted as a headwind, however US Federal Reserve policy statement provided some support to the prices.

Crude prices were supported by Fed’s decision for continued monetary easing which would improve the demand for crude from US. Lower than expected inventories and a weaker dollar internationally also supported crude prices. Traders can expect that crude oil prices can move higher as lesser inventories yesterday and Fed bond buying can support the prices.

Crude-oil futures prices trimmed earlier gains yesterday, after U.S. weekly data showed implied oil demand fell last week to its lowest level since Jan. 4. NYMEX oil futures gained also because of bargain buying after declining in the previous session due to Eurozone economic concerns and anticipation of rise in the US crude oil stock in the week ended Friday.

Crude oil recovered a bit from previous day’s loss to close higher, fueled by higher refinery processing rates and despite concerns over signs of weak gasoline demand ahead of the peak driving season.

Crude oil futures fall sharply on Cyprus bailout woes, firm dollar

Crude oil futures came under heavy selling pressure during European morning hours on Monday, as appetite for growth-linked assets weakened after news of a bailout deal for Cyprus sparked fresh concerns over the sovereign debt crisis in the euro zone.

Oil prices struggled further due to a stronger U.S. dollar, as dollar-priced commodities become more expensive to investors holding other currencies when the greenback gains.

The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was up 0.6% to trade at 82.89.

Oil falls on news of increased Saudi, Iraqi exports

                         Oil futures are tumbling to start the week in Asia on news that Saudi Arabia and Iraq increased production in January.

On the New York Mercantile Exchange, light, sweet crude futures for April delivery are off 1.11% at USD92.42 per ounce in Asian trading Monday. Helped by some strong U.S. data points, New York-traded oil futures tacked on 1.85% last week, the second consecutive weekly gain.

In the U.S., data on Friday showed that industrial production rose by 0.7% in February, beating expectations for a 0.4% increase. Data published last Thursday showed initial claims for jobless benefits fell last week by 10,000 to 332,000 claims. Analysts expected an increase to 350,000 claims. The less volatile four-week moving average fell by 2,750 to 346,750.

Traders appear to be looking past those data points today to focus on production news. According to the Joint Organisations Data Initiative, Saudi Arabia and Iraq, both members of the Organization of Petroleum Exporting countries, increased exports for the first time in three months in January.

Saudi Arabia, the largest OPEC producer, shipped nearly 7.1 million barrels per day last month, an increase of 300,000 barrels per day from December. Iraq, OPEC’s second-largest producer behind Saudi Arabia, boosted its January exports by 10,000 barrels to 2.36 million barrels per day.

The Joint Organisations Data Initiative data indicate Indian demand surged 16% to 4.2 million barrels per day in January. India is Asia’s second-largest oil-consuming nation behind China.

In the week ahead investors will be focusing on Wednesday’s Federal Reserve policy statement, amid speculation over an earlier-than-expected end to the bank’s asset purchase program.

Elsewhere, Brent futures for May delivery slipped 1% to USD108.99 per barrel on the ICE Futures Exchange.

Crude Oil and Natural Gas Trade On A Positive Note Ahead Of EIA Inventory

         In the Asian session crude oil continues to gain trading at 92.72 adding 18 cents. West Texas Intermediate oil traded near the highest level in two weeks after an industry report showed U.S. crude stockpiles fell for the first time in a month. The API weekly report released prior to the official EIA inventory showed a decline in stock after the EIA showed a surprising increase in inventory last week. Crude supplies declined by 1.4 million barrels. 

Analysts polled were looking for a 2.3 million-barrel climb. Gasoline inventories also fell by 3.1 million barrels, while distillate stockpiles lost 2.2 million barrels, the trade group said. Analysts forecast a fall of 1.5 million barrels for gasoline supplies and a 2 million-barrel decline for distillate stockpiles.  This week’s EIA projected inventory is expected to show that crude oil added 2.4mn barrels differing from the API release yesterday.

Brent crude oil prices declined for the third straight session in choppy trading session, while US oil posted a fourth consecutive gain, tightening the spread between the two contracts to the narrowest since January. On Tuesday the EIA cut its 2013 world oil demand forecast but also cut the forecast for non-OPEC output having a neutral effect on the markets.

IEA Report Weighs On Crude Oil Prices

                         This morning crude oil continues to ease dipping 23 cents to trade at $92.28. Crude oil retraced back from the high of $93.40 and in the process settled lower yesterday at $92.51. A rise in US oil inventories and bearish forecast from the IEA weighed on the sentiment. The EIA reported that crude stocks rose 2.62mn barrels compared with the expectations for a rise of 2.3mn barrels. Meanwhile, International Energy Agency has cut estimates for global oil demand. Crude oil prices closed slightly lower, as better than-expected US retail sales lifted the dollar to a 7-month high, putting an end to a climb in dollar-denominated assets. The dollar climbed to a 7-month high against a basket of currencies and a 3-month peak against the euro on Wednesday, as robust US retail sales data bolstered prospects for the world’s largest economy. The dollar index rose to 82.882, after a high of 83.055 — its highest level since early August and compared with 82.585 on late Tuesday.

The International Energy Agency most recent report just released continued to inch lower on its forecasts for global oil demand while increasing its expectations of supply growth for this year.
Since January, the Paris-based energy watchdog has cut 200,000 barrels a day from its forecast for oil demand in 2013 and added 200,000 barrels a day to its expectations of supply growth from countries outside the Organization of Petroleum Exporting Countries, or OPEC. 

Copper Advances on China Autos, U.S. Jobs: Commodities at Close

The Standard & Poor’s GSCI Spot Index of 24 raw materials rose 0.1 percent to settle at 649.62 at 3:59 p.m. New York time, led by industrial metals.

The UBS Bloomberg CMCI gauge of 26 prices advanced 0.3 percent to 1,551.55.

BASE METALS

Copper rose to the highest in more than a week as signs of strength in Chinese auto sales and gains in the U.S. labor market brightened demand prospects for industrial metals.

Wholesale deliveries of cars, multipurpose and sport- utility vehicles rose 20 percent in the two months ended Feb. 28 in the strongest start since 2010, according to a Chinese industry group. U.S. job openings climbed in January, and confidence among small businesses rose in February for a third month, reports showed.

On the Comex in New York, copper futures for May delivery advanced 1.1 percent to $3.5545 a pound. Earlier, the price reached $3.576, the highest for a most-active contract since Feb. 28.

On the London Metal Exchange, copper for delivery in three months gained 0.9 percent to $7,830 a metric ton ($3.55 a pound). Zinc, nickel, tin, aluminum and lead also rose.

PRECIOUS METALS

Gold rose, capping the longest rally in six months, as Europe’s slumping economy increased speculation that central banks will expand stimulus measures, boosting demand for the metal as a store of value.

On the Comex, gold futures for April delivery climbed 0.9 percent to $1,591.70 an ounce. The price climbed for the fourth straight session, the longest rally since Aug 21.

Silver futures for May delivery rose 1.1 percent to $29.171 an ounce.

On the New York Mercantile Exchange, platinum futures for April delivery fell 0.4 percent to $1,595 an ounce.

Palladium futures for June delivery dropped 0.5 percent to $775.50 an ounce.

CRUDE OIL

Crude oil advanced as the euro trimmed losses against the dollar and the Organization of Petroleum Exporting Countries increased production.

On the Nymex, oil futures for April delivery rose 0.5 percent to $92.54 a barrel.

Brent oil for April settlement dropped 0.5 percent to $109.65 a barrel on the London-based ICE Futures Europe exchange.

OAO Lukoil’s Litasco bought a cargo of Forties crude at the lowest differential in almost 11 months. Statoil ASA bid for Russian Urals blend at the highest spread in almost a month.

Daily exports of the 12 main grades of North Sea crude for loading in April will increase 8 percent to the highest in 10 months, programs obtained by Bloomberg News showed.

OIL PRODUCTS

Gasoline was little changed following wide price swings linked to volatile biofuel-credit prices.

On the Nymex, gasoline futures for April delivery slid 0.1 percent to $3.1502 a gallon. The price rose as much as 1.2 percent and dropped as much as 1.6 percent.

Heating-oil futures for April delivery fell 0.7 percent to $2.9484 a gallon.

Oil down in Asian trading after modest U.S. gains (Investing.com)

                       Oil futures are trading slightly lower during Tuesday’s Asian session on the heels of modest gains seen in U.S. trade Monday.

On the New York Mercantile Exchange, light, sweet crude futures for April delivery fell 0.12% to USD91.94 per barrel in Asian trading Tuesday after rising slightly in the U.S. on Monday. On Monday, oil traded down by as much as 1.2% following the release of some concerning data points out of China, the world’s second-largest oil consumer.

China's industrial production rose 9.9% in February, below expectations for a 10.5% increase also below a 10.3% hike logged during the previous month.

Consumer prices in China rose by 3.2% in February from a year earlier, above expectations for a 3% increase and accelerating sharply from a 2% rate of increase in January.

Those data points, which fuel speculation the Chinese recovery has not yet reached the pitch market participants have hoped for, combined with news Saudi Arabia increase output last month are seen as weighing on crude prices.

Goldman Sachs added on Monday that U.S. crude supplies could increase in the second and third quarters as more pipeline capacity becomes available.

Elsewhere, the U.S. state of Colorado said its 2012 oil production climbed to 48 million barrels, a 50-year high, due in large part to increased production at the Niobrara Shale. Colorado’s oil production was less than 33 million barrels in 2009.

Some estimates say the Niobrara Shale could be home to more than 4 billion barrels of oil equivalent. Anadarko Petroleum is among the major producers there.

Meanwhile, Brent crude for May delivery fell 0.01% to USD109.53 per barrel on the ICE Futures Exchange.

Oil pulls back in Asia after decent U.S. showing - ( investing.com)

Oil futures declined modestly during Friday’s Asian session after posting a decent gain during Thursday trade in the U.S. as traders await the release of the February non-farm payroll report due out from the U.S. Labor Department later today.

On the New York Mercantile Exchange, light, sweet crude futures for April delivery fell 0.13% to USD91.44 in Asian trading Friday after gaining 0.75% to settle at USD91.11 a barrel on Thursday in the U.S.

Risk appetite buoyed by rising U.S. equities and a strong data point helped lift crude Thursday before it succumbed to some profit taking in Asian trade Friday.

In U.S. economic news, first time claims for unemployment benefits fell to 340,000 last week from 347,000 in the previous week. Economists expected last week’s reading to rise to 355,000. The reading is close to a five-year low. The less volatile four-week moving average also fell by 7,000 last week to 348,750.

Even with the modest decline seen thus far in the Asian session, West Texas Intermediate futures are poised for their best weekly performance in three weeks.
Elsewhere, the Organization of Petroleum Exporting Countries said it will increase global oil shipments by 420,000 barrels a day to 23.83 million per day for the four-week stretch ending on March 23. Those figures exclude Angola and Ecuador. Saudi Arabia, the cartel’s biggest producer, is believed to be making up the bulk of the increased shipments.

Oil traders will now focus on the February NFP number due out later today. Economists expect the U.S., the world’s largest economy to show the addition of 160,000 new jobs last month. Analysts believe the February number will be somewhat hindered by fears of government spending cuts.

The U.S. is the world’s largest oil consumer. Elsewhere, Brent futures for April delivery fell 0.08% to USD110.86 per barrel.

Oil Falls to 2013 Low on China, Europe Manufacturing

West Texas Intermediate oil slipped to the lowest level this year as manufacturing expanded less than forecast in China and contracted in Europe, bolstering concern that fuel demand will decline.

Futures fell 1.5 percent after data showed China’s manufacturing growth slowed for a second month while factory output declined in the euro area and the U.K. The factory data helped theU.S. dollar strengthen against the British pound and the euro. A stronger dollar curbs the appeal of raw materials to investors.

“Oil is down because of the disappointing manufacturing index data overnight, especially the Chinese number, which shows the country had the smallest of expansions,” said John Kilduff, a partner at Again Capital LLC, a New York-based hedge fund that focuses on energy. “U.K. manufacturing has plunged into contraction, which is going to hurt demand.”

Crude oil for April delivery fell $1.37 to $90.68 a barrel on the New York Mercantile Exchange, the lowest settlement since Dec. 24. Prices dropped 2.6 percent this week. The volume of all futures traded was down 1.5 percent from the 100-day average at 3:10 p.m.