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Business

Oil price goes down in Asia

Dunya News

Japanese manufacturing activity also shrank in June for the first time in seven months.

Crude prices slipped in Asian trade Tuesday as slumping manufacturing output in the worlds major economies weighed on markets, analysts said.New Yorks main contract, light sweet crude for August delivery, retreated 17 cents to $83.58 a barrel and Brent North Sea crude for delivery in August shed six cents to $97.28.Weak manufacturing data from key global economies led to concerns among traders of a corresponding erosion in energy demand, IG Markets said in a report.Faltering manufacturing output across the worlds biggest economies spooked some investors, it said. The US, China, Japan and Europe are all seeing their lowest levels for up to three years.Data from the US Institute for Supply Management released late Monday showed its June manufacturing index falling to 49.7 percent, from Mays 53.5 percent. It was first time the index had fallen below the 50 percent breakeven point between contraction and growth since July 2009, and was a grim reminder of the economic problems in the worlds largest oil consumer.In China, figures from British bank HSBC showed manufacturing activity in the worlds largest energy consumer contracting for the eighth consecutive month in June, despite an interest rate cut.The banks purchasing managers index (PMI) for China, which gauges the manufacturing sector, fell to 48.2 in June from 48.4 in May.Japanese manufacturing activity also shrank in June for the first time in seven months, data from London-based research firm Markit showed Friday, while their eurozone numbers showed output unchanged from a month ago and at its lowest level since June 2009.