Colosseum a.s. (Colosseum a.s.)
Commodities  |  March 05, 2013 08:35:28

Oil is at two-month lows

ColosseumEven on Monday did not stop the fall in oil prices, which lasts from about mid-February. For that yesterday's poor results were cheapening the service sector in China. Services are growing weakest pace in the last five months. This suggests that economic activity in this Asian superpower is not quite ideally poised. This means in practice and probably lower Chinese demand for oil. Oil weakens weeks or longer due to its higher production in the U.S., combined with expectations of lower global demand. The April futures contracts for WTI crude on the CME yesterday became cheaper by 56 cents to $ 90.12 a barrel.

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