Oil fell to extend two weeks of losses after data from China reignited concerns about a patchy recovery in the world’s biggest crude importer.
West Texas Intermediate accelerated losses Monday afternoon in light-volume trading. Futures opened lower this week after data released on Sunday showed that China’s manufacturing activity contracted unexpectedly.
Meanwhile, JPMorgan Chase & Co. won its bid to acquire the bank on Monday in a government-led emergency intervention, raising concerns about the stability of lenders and the country’s overall economic health.
“The nervous trading continues,” said Dennis Kissler, senior vice president of trading at BOK Financial Securities, of the gross netting losses as the SPX rose. “While the overall economic picture looks a bit weaker, the true fundamentals for crude oil remain positive.”
Hedge funds and money managers have turned deeply bearish on crude oil after prices fluctuated sharply in April, rising to a 15-month high after OPEC and its allies announced a cut in production, before giving up those gains amid a deteriorating outlook.
With China on holiday until Wednesday, attention will be on whether major central banks, including the Federal Reserve, continue to adjust rates.
Prices:
- WTI for June delivery fell $1.12 to settle at $75.66 a barrel in New York.
- Brent for July settlement was down 23 cents to settle at $79.31 a barrel.
