Oil price sees large drop
NEW YORK — Weak manufacturing data from China and falling U.S. stock markets pushed oil to its biggest one-day decline in five weeks Wednesday.
Benchmark crude for September delivery dropped $1.84, or 1.7 percent, to close at $105.39 a barrel on the New York Mercantile Exchange. That's the biggest percentage decline since June 21.
Another decline in U.S. supplies failed to give oil a jolt. U.S. crude oil inventories declined by 2.6 million barrels, bringing the four-week drop to nearly 30 million barrels. Still, at 364.2 million barrels, the nation's oil supply is in the upper half of the average range for this time of year. And gasoline supplies remain above year-ago levels, according to the Energy Department.
Jim Ritterbusch, president of energy consultancy Ritterbusch and Associates, said supplies of oil remain high.
“It is becoming increasingly difficult to construct a bullish argument that would support triple-digit crude pricing in either key benchmark,” Ritterbusch said in a note to clients.