Crude Weighed Down By Weak China PMI & Expected Fed Hike

Oil prices are down today on the back of China’s manufacturing PMI falling below 50 and in anticipation of another Fed hike but have been trading in a range of less than a dollar. WTI is down 0.7% to $76.13/bbl close to the intraday low of $76.03 and now below the 50-day moving average. Brent is down 0.5% to $79.74 following a $79.63 low. The USD index is 0.1% higher.

• Crude markets have been soft as demand fears have taken prominence. These came to the fore again after China reported a drop in the April manufacturing PMI to 49.2, below the breakeven 50-level, from 51.9, suggesting that fuel demand from China may not be as robust as expected following reopening.
• The FDIC was expected to announce the results of an auction for the troubled First Republic Bank on Sunday night. A Reuters source has said that a decision is close (see A Deal On First Republic Is Apparently Getting Closer).
• Later today there are the US manufacturing ISM and PMI for April and construction data. Europe and the UK will also be shut.