2014.09.2223:36:27UTC+00Brent approaches lowest in a week with incoming PMI from China

Brent crude oil neared its one week low behind outlook on a slower pace of manufacturing in china, the second largest consumer of oil in the world, while West Texas Intermediate was steady.

Futures for the European crude oil benchmark was mostly unchanged today after declining by the greatest in three weeks yesterday by 1.4%, or $1.42, to $96.97. Contracts for Brent with a delivery date in November improved by 7 cents mid morning Seoul time at a price per barrel of $97.05 in London’s ICE Futures Europe exchange. Trading volume for futures was 80% less than the 100 day average. Brent has fallen by 12% this year so far.

Analysts surveyed by Bloomberg News forecast that China’s purchasing managers’ index (PMI) for the month of September will have fallen to the 50 level, down from the 50.2 in August. A preliminary reading of the manufacturing gauge is expected to be released from HSBC Holdings Plc and Markit Economics. In the US, stockpiles of crude are predicted to have fallen by 750,000 barrels last week before the coming of the Energy Information Administration’s official report.

Analyst Hong Sung Ki from Seoul’s Samsung Futures Inc. says that, The economic slowdown in China has been influencing energy markets. Crude imports have been falling recently and slowing economic growth in China is having a downward pressure on oil prices.”

Technical support for Brent yesterday was along its lower Bollinger Band for 30 days where today’s decline for futures stopped at around $96 per barrel.

West Texas Intermediate with a delivery date in November traded 5 cents up at a price per barrel of $90.92 after October contracts expired yesterday 1% down at $91.52. The American benchmark was trading at a discount to brent of $6.09 on the New York Mercantile Exchange.