World oil prices fell sharply on Tuesday (Wednesday morning GMT ) , after manufacturing data in China were up slightly adding to concerns about slower growth in the world 's biggest energy consumer .
U.S. benchmark futures contract , light sweet crude or West Texas Intermediate for delivery in May , ending trading on the New York Mercantile Exchange at 99.74 dollars per barrel , down 1.84 dollars or 1.8 percent from Monday's close , AFP reported .
Brent North Sea crude for delivery in May , slipped 2.14 dollars, or nearly 2.0 percent , to settle at 105.62 dollars a barrel in London trade .
" Concerns about China's economy made things quite bearish , " said Michael Lynch of Strategic Energy and Economic Research .
Purchasing managers' index ( PMI ) for China 's official manufacturing sector edged up to 50.3 in March , from 50.2 the lowest level in eight months in February , slightly above the 50 -level that signifies expansion.
The figure was slightly better than expected , but still continues to show weakness , show the Chinese economy grew in the first quarter below the government's target of an annual growth of 7.5 percent .
HSBC also reported a separate PMI for China fell to 48.0 in March , the lowest number in eight months .
" From the perspective of China's oil demand , the figures raised concerns about global oil demand growth overall when most expected that the demand will be driven by China , " said Phil Flynn of Price Futures Group .
Also weighing on oil , analysts said , is the expectation that the government's weekly oil inventory report U.S. on Wednesday will show another rise in crude supplies .
Tim Evans of Citi Futures said the consensus expectation is for a buildup of about 2.5 million barrels in crude inventories .
In addition , the market is under pressure by reports that Libya may be close to a deal with the rebels who had blocked oil terminals since July , analysts said .
The sources said the government and the rebels seem to be getting close to an agreement , which reduced exports to 250,000 barrels per day from 1.5 million barrels due to the potential blockade reopened .
World oil prices fell on Monday ( Tuesday morning GMT ) , as investors took profits after last week's strong gains triggered by a positive U.S. economic data and tensions over Ukraine .
In trading on the New York Mercantile Exchange , light sweet crude or West Texas Intermediate ( WTI ) for delivery in May fell nine cents to close at 101.58 dollars per barrel .
In London , Brent North Sea crude for delivery in May dipped 31 cents to stand at 107.76 dollars per barrel .
The absence of any progress over the weekend in clashes between Russia and the West over Ukraine to help take some of the pressure on prices , although the situation remains tense .
Russian troops were gathered in the eastern border of Ukraine , sparking concerns about Moscow plans after taking over the Crimean Peninsula this month .
Oil prices fell as the U.S. and Russia are trying to solve the Ukrainian crisis through diplomatic means .
Weekend talks between Russian Foreign Minister Sergei Lavrov and U.S. Secretary of State John Kerry did not reach any agreement . But the market took it as a sign that both sides seem to have been open to exchange views .
Although the two sides on Sunday ( 30/3 ) failed to reach a breakthrough deal in Paris , they agreed to continue talks after what was described as a negotiation " light " and " constructive " .
Russia provides about a quarter of Europe's natural gas supply , with about half of their exports shipped through pipelines in Ukraine , analysts said .
" The oil market is still locked into the balance of geopolitical risk and adequate supply , " said Phil Flynn of Price Futures Group .
" Talks with Russia that appear everywhere increases the likelihood that there will be sanctions lead to Russia . Still Russian troops are on the border of Ukraine . "
Also helped weaken oil prices was the start of production from the West Qurna - 2 field in Iraq , starting at 120,000 barrels per day but is expected to increase to 420,000 barrels per day by the end of the year .
Traders also kept an eye on important traffic in the Strait of Hormuz , where an armed warship attacked an oil tanker on Sunday .
While Federal Reserve Chairman Janet Yellen said on Monday that the economy will require further support . His comments helped crude oil pared losses initially .
There is still room for the Fed to boost the U.S. economy through a policy of " extraordinary " in the form of bond-buying program and the massive interest rates near zero , Yellen said .
Speech to reassure investors after Yellen said in his first press conference as chairman of the Fed after the Fed policy meeting in March that the first increase in the federal funds rate can occur six months after the reduction of the stimulus ends , earlier than market expectations , so quoting AFP and Xinhua .
World oil prices fell on Monday ( Tuesday morning GMT ) , as investors took profits after last week's strong gains triggered by a positive U.S. economic data and tensions over Ukraine .
In trading on the New York Mercantile Exchange , light sweet crude or West Texas Intermediate ( WTI ) for delivery in May fell nine cents to close at 101.58 dollars per barrel .
In London , Brent North Sea crude for delivery in May dipped 31 cents to stand at 107.76 dollars per barrel .
The absence of any progress over the weekend in clashes between Russia and the West over Ukraine to help take some of the pressure on prices , although the situation remains tense .
Russian troops were gathered in the eastern border of Ukraine , sparking concerns about Moscow plans after taking over the Crimean Peninsula this month .
Oil prices fell as the U.S. and Russia are trying to solve the Ukrainian crisis through diplomatic means .
Weekend talks between Russian Foreign Minister Sergei Lavrov and U.S. Secretary of State John Kerry did not reach any agreement . But the market took it as a sign that both sides seem to have been open to exchange views .
Although the two sides on Sunday ( 30/3 ) failed to reach a breakthrough deal in Paris , they agreed to continue talks after what was described as a negotiation " light " and " constructive " .
Russia provides about a quarter of Europe's natural gas supply , with about half of their exports shipped through pipelines in Ukraine , analysts said .
" The oil market is still locked into the balance of geopolitical risk and adequate supply , " said Phil Flynn of Price Futures Group .
" Talks with Russia that appear everywhere increases the likelihood that there will be sanctions lead to Russia . Still Russian troops are on the border of Ukraine . "
Also helped weaken oil prices was the start of production from the West Qurna - 2 field in Iraq , starting at 120,000 barrels per day but is expected to increase to 420,000 barrels per day by the end of the year .
Traders also kept an eye on important traffic in the Strait of Hormuz , where an armed warship attacked an oil tanker on Sunday .
While Federal Reserve Chairman Janet Yellen said on Monday that the economy will require further support . His comments helped crude oil pared losses initially .
There is still room for the Fed to boost the U.S. economy through a policy of " extraordinary " in the form of bond-buying program and the massive interest rates near zero , Yellen said .
Speech to reassure investors after Yellen said in his first press conference as chairman of the Fed after the Fed policy meeting in March that the first increase in the federal funds rate can occur six months after the reduction of the stimulus ends , earlier than market expectations , so quoting AFP and Xinhua .
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