MTECHTIPS;-Oil falls on lingering growth concerns

MTECHTIPS;-Oil falls on lingering growth concerns

Oil futures traded lower during Monday’s Asian as traders dealt with sentiment that may be indicating global economic growth is slowing. On the New York Mercantile Exchange, light sweet crude futures for delivery in July slipped 0.83% to USD93.37 per barrel in Asian trading Monday after settling down 0.45% Friday to settle the week at USD93.84 a barrel by close of trade in the U.S. On the week, Nymex oil futures lost 2.55%, the biggest weekly decline since the week ended April 19. Oil came under pressure last Thursday after 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. Not even some decent data out of the U.S. Friday could bolster oil on Friday. In U.S. economic news, the U.S. Commerce Department said core durable goods orders rose by a seasonally adjusted 1.3% in April, beating expectations for a 0.5% increase. Total durable goods orders, which include transportation items, increased by a seasonally adjusted 3.3% last month, above expectations for a gain of 1.5%. The U.S. and China are the world’s two largest oil consumers. In other oil-related news, media reports out of Kuwait are saying the country’s oil minister, Hani Hussein, has resigned. Press reported indicated Hussein resigned due to criticism following a $2.2 billion payment following a botched business deal. The country is one of the top exporters in the Organization of Petroleum Exporting Countries, though supply disruptions are not expected because Kuwait’s royal family dictates the kingdom’s production and export policies. Meanwhile, Brent futures for July delivery fell 0.44% to USD102.16 on the ICE Futures Exchange.

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