Categorized | ForexYard

Crude Oil Lower On Chinese Economic Data

Posted on 24 May 2011 by ForexYard

The price of spot crude oil fell after weaker than expected Chinese PMI data and a flair up in the European debt crisis. Both events had the same effect of switching to a “risk-off” mode as higher yielding assets such as equities and the Australian dollar traded lower on the day. Spot crude oil traded as low as $96.35 before settling at $98.22.

The HSBC China Manufacturing Purchasing Managers Index dropped to a 10-month low at 51.1 in May from 51.8 in April. The weaker than expected data combined with the increased tensions in Europe helped to drag crude oil prices below the psychological $100 price level.

Crude oil prices have slid from their May highs near $115 but have consolidated in a range between $95 and $104.50. A break below $95 could trigger declines to $93.00 followed by $83. A move higher would test $110 followed by the May high.

This analysis is republished with permission from ForexYard. Their daily analysis can also be found at Daily Commodity News.

Comments are closed.

Free Ebook!

Dowlnoad this FREE Ebook to Discover
7 Expert Secrets to Crude Oil Futures Trading
Enter Your Name & Email For Instant Access: