Crude oil futures ended lower on Thursday as concerns about the outlook for oil demand from China, and disappointing U.S. and European economic data outweighed recent data showing a drop in U.S. crude inventories and rising tensions in the Middle East. The Institute for Supply Management (ISM) released a report showing U.S. manufacturing activity unexpectedly contracted at an accelerated rate in the month of July. The ISM said its manufacturing PMI fell to 46.8 in July from 48.5 in June, with a reading below 50 indicating contraction. Street had expected the index to inch up to 48.8.
Benchmark U.S. crude oil futures for September delivery fell $1.60 or about 2.05% to $76.31 per barrel on the New York Mercantile Exchange. Brent crude for October delivery dropped $1.32 or 1.63% to $79.52 per barrel on London's Intercontinental Exchange.