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Oil Prices Drop as Economic Worries Resurface

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U.S. crude-oil futures fell Tuesday along with declines in broader markets as worries re-emerged about the broader economic outlook following weak data on the manufacturing sector. Light, sweet crude for October delivery settled $1.17, or 1.2%, lower at $95.30 a barrel on the New York Mercantile Exchange, after trading as high as $97.37 a barrel earlier in the session. Brent crude on the ICE futures exchange settled $1.60, or 1.4%, lower at $114.41 a barrel. Prices tumbled from positive to negative territory early in the session as investors fled from a poor reading on the U.S. manufacturing sector.

 

The Institute for Supply Management’s purchasing managers’ index slipped to 49.6 last month from 49.8 in July, the lowest reading since July 2009. A reading above 50 indicates expanding activity. “The market responded according to the ISM data,” said Rich Ilczyszyn, head of Chicago brokerage iiTrader. “I don’t think we have any case here for $95 oil based on demand…I think the market is running out of gas right here.”

 

Source: NASDAQ.com