MTECHTIPS Crude oil tumbles to 1-week low on China PMI data, Fed comments

MTECHTIPS:-Crude oil tumbles to 1-week low on China PMI data, Fed comments

Crude oil futures were sharply lower on Thursday, falling to a one-week low after data showed that China’s manufacturing sector contracted for the first time in seven months in May. Market sentiment was also dampened after Federal Reserve Chairman Ben Bernanke said Wednesday the central bank could begin tapering its bond-buying program in the "next few meetings”.On the New York Mercantile Exchange, light sweet crude futures for delivery in July traded at USD93.34 a barrel during European morning trade, down 1% on the day. New York-traded oil prices fell by as much as 1.3% earlier in the session to hit a daily low of USD93.12 a barrel.  Data released earlier showed that China’s HSBC Flash Purchasing Managers Index, the earliest indicator of the country's industrial activity, fell to a seven-month low of 49.6 in May from a final reading of 50.4 in April. The disappointing data added to lingering concerns over a slowdown in the world’s second largest economy. Prices came under additional pressure after Federal Reserve Chairman Ben Bernanke said Wednesday the bank could begin tapering its bond-buying program in the "next few meetings”. In testimony to the U.S. Joint Economic Committee on Wednesday, Bernanke said a decision to scale back the Fed’s asset purchase program could be taken in the "next few meetings" depending on economic data.