DUBLIN: Oil prices resumed their downward trend on Friday pulled lower by weaker global stock markets and a sharp contraction in China’s manufacturing activity, with the U.S. benchmark on track for its longest weekly losing streak since 1986.
Activity in China’s factory sector shrank at its fastest pace in almost 6-1/2 years in August as domestic and export demand dwindled, adding to worries about lower demand for crude in the world’s second biggest oil consumer.
Asian stocks fell on Friday morning, following Wall Street down as fears took hold of a China-led deceleration in global growth. [MKTS/GLOB]
Key oil benchmarks were trading near 6-1/2 year lows, with the U.S benchmark headed for its eighth straight weekly decline, the longest weekly losing streak since 1986.
In late 1985, oil prices slumped to $10 from around $30 over five months as OPEC raised output to regain market share following an increase in non-OPEC production.
U.S. crude for October delivery was 59 cents lower at $40.73 a barrel at 0328 GMT. The September contract , which expired on Thursday, ended 34 cents higher. The U.S. benchmark hit a 6-1/2 year low of $40.21 a barrel on Thursday.
Brent was on track for its seventh weekly decline in the past eight, trading 56 cents lower at $46.06 a barrel, after settling 54 cents lower on Thursday.
