Disappointing data on employment and manufacturing, predictions from the IEA that oil consumption will fall and dollar fluctuations all pushed the price of crude oil futures down. Brent crude oil futures lost .99 percent to trade at $75.34, down 3.56 percent from a month ago.
Oil has been trapped in a narrow band between $70 and $80 per barrel for much of the week, with signs of renewed demand pushing against fears of economic weakness.
A report on Thursday said that industrial production and manufacturing New York had expanded only incrementally. China also posted slower gross domestic product growth, although this was not unexpected because of the government’s commitment to cooling down its economy.
A report from the International Energy Agency, a Paris-based energy watchdog, said Tuesday that fading hopes of a quick recovery and greater enthusiasm for fuel-efficient vehicles would cut into demand growth for oil.
However, these factors will be somewhat offset by increasing consumption in Asian economies like India and China.
In other oil-related news, BP announced that it had completely sealed off the leaking wellhead of the destroyed Deepwater Horizon drilling rig. The company will now conduct pressure tests to asses the integrity of the well structure before attempting to shut it permanently.
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