13 Jun 2016
WTI crude oil futures for July delivery fell 1.22% or 60 cents to US$48.47 per barrel at 10.12 WIB, after opening down 0.45% at $48.85 per barrel.
At the same time, the European benchmark for Brent oil futures for August delivery retreated 0.91% or 46 cents to $50.08 per barrel, after opening down 0.24% or 12 cents at $50.42 per barrel.
According to a survey conducted in collaboration with the Japanese Ministry of Finance and the Economic and Social Research Institute, as quoted by Reuters today, the Business Survey Index (BSI) sentiment of large-scale manufacturers in the country stood at -11.1 in April-June 2016, down from -7.9 in January-March.
In addition, concerns over growth in China remain, mainly due to excess industrial capacity and rising debt.
With the gloomy economic growth picture in Asia, many oil speculators are selling off their positions after taking profit from a crude oil price rally since it hit its lowest level in a decade earlier this year.
Even so, some analysts expect that oil demand in Asia, especially China, will remain strong.
"In contrast to soft global crude prices, China’s crude demand will remain supportive this year, as demand continues to be supported by inventory building and refinery runs," energy consultancy FGE said in its June research, as quoted by Reuters.
On the other hand, the US dollar has rebounded about 1.3% from its lowest level this month against a basket of major currencies, driven by the potential for interest rate hikes in the US and concerns over the Asian economies that dragged down currencies in the region.
The US dollar index, which measures the movement of the US dollar against a basket of major currencies, rose 0.04% or 0.034 points to 94.605 at 11.01 WIB, after opening slightly higher by 0.09% at 94.654.
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