Oil prices inch down on high stocks, weak China factories survey

Crude oil storage tanks are seen from above at the Cushing oil hub, appearing to run out of space to contain a historic supply glut that has hammered prices, in Cushing, Oklahoma, March 24, 2016. REUTERS/Nick Oxford

Oil prices edged lower on Monday, undermined by a weak manufacturers survey out of China, and despite talk that OPEC-led crude oil output cuts could be extended when oil producers meet later this month.

NYMEX crude for June delivery CLc1 was down 10 cents at $49.23 a barrel by 0204 GMT.

London Brent crude for new front-month delivery in July LCOc1 was down 13 cents at $51.92.

Also weighing on prices was a faster than expected slowdown of growth in China’s manufacturing sector in April. An official survey showed on Sunday that producer price inflation cooled and policymakers’ efforts to curtain financial risks in the economy weighed on demand.

“The moderation in the China PMI could see commodity prices come under some modest pressure,” ANZ said in a note.


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