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MTECHTIPS:-NYMEX crude drops sharply in Asia as Shanghai Composite plummets

MTECHTIPS:-NYMEX crude drops sharply in Asia as Shanghai Composite plummets

Crude oil prices dropped sharply in Asia on Monday as markets reflected turmoil in China, with the Shanghai Composite down more than 7%, and overall negative sentiment on demand. On the New York Mercantile Exchange, crude oil for delivery in October plunged 2.18% to $39.57 a barrel as investors ignored a weaker dollar and focused on oversupply as well as dimemr prospects for the Federal Reserve to raise interest rates in September. Later on Monday, Federal Reserve Bank of Atlanta President Dennis Lockhart is to speak with his comments to be closely watched. Last week, crude oil futures tumbled to levels not seen since March 2009 on Friday, as gloomy manufacturing data from China added to concerns over slowing global growth and weak demand prospects. Data on Friday showed that manufacturing activity in China contracted at the fastest rate in six-and-a-half years in August, exacerbating fears over a slowdown in the world’s second-largest economy. The preliminary reading of the Caixin China manufacturing purchasing managers’ index came in at 47.1, down from July’s final reading of 47.8. It was the lowest reading since March 2009. China is the world’s second largest oil consumer after the U.S. and has been the engine of strengthening demand. Manufacturing numbers are often used as indicators for fuel demand
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