Crude oil futures magnify their losses and ended lower on Friday, amid concerns about the outlook for demand. Expectations of interest rate cuts by central banks, and hopes that the OPEC+ will extend production cuts into the third quarter helped limit oil's losses. Data showing a contraction in China's manufacturing sector has added to concerns about the outlook for oil demand. The latest survey from the National Bureau of Statistics showed China slipped into contraction territory in May, with a manufacturing PMI score of 49.5. Meanwhile, a report from Baker Hughes said the oil rig count in the U.S. dropped by one this week to 496, which is less than 59 rigs a year ago.
Benchmark crude oil futures for July delivery fell $0.92 or about 1.88% to settle at $76.99 a barrel on the New York Mercantile Exchange. Brent crude for July delivery was down $0.71 or 0.85% to $81.17 per barrel on London's Intercontinental Exchange.