(RTTNews) - The price of crude oil was ticking lower Wednesday morning after data revealed contraction in manufacturing activity in China and Europe.
China's manufacturing sector contracted in February for a fourth straight month as new export orders dropped sharply, escalating fears about demand growth in the world's second largest oil user.
Light Sweet Crude Oil (WTI) futures for April delivery, the new front month contract, eased $0.60 to $105.65 a barrel. Yesterday, oil advanced nearly 3 percent to settle at a 9-month high on supply concerns after Iran's move to cut off crude supplies to U.K. and France, fueling fears of further disruptions from the middle east.
This morning, the U.S. dollar continued to pare losses versus the euro and sterling. The buck was extending its 6-month high versus the yen and trading flat against the Swiss franc.
In economic news, euro zone private sector contracted in February following the marginal expansion seen in January, according to a survey by Markit Economics. The composite output index fell to 49.7 in February from 50.4 in January. Economists expected the score to remain steady at 50.5.
Meanwhile, industrial new orders in the euro zone increased more than economists expected in December, data released by statistical office Eurostat showed.
Traders will look to the data on existing home sales from the National Association of Realtors, due out at 10 a.m. ET. Economists estimate existing home sales of 4.69 million for January, a modest increase from the 4.61 million units reported for the previous month.
Today after the market hours, the API will release its U.S. crude oil inventories report for the week ended February 17.
