2023.05.3109:59:00UTC+00Oil Extends Losses On China Data

Oil prices fell over 1 percent on Wednesday to extend steep losses from the previous session as weaker-than-expected China data offset signs of progress on the U.S. debt limit deal.

Benchmark Brent crude futures fell 1.1 percent to $72.87 a barrel, while WTI crude futures were down 1.3 percent at $68.59.

Both benchmarks fell over 4 percent on Tuesday due to concerns about China's uneven economic recovery and uncertainty over whether the Congress will pass the debt deal by the June 5 deadline.

Fuel demand concerns resurfaced after official data showed manufacturing activity in China shrank faster than expected in May on weakening demand, raising uncertainty over post-Covid recovery.

Meanwhile, service sector activity expanded at the slowest pace in four months. The official manufacturing PMI dropped to a five-month low of 48.8 from 49.2 in April while the non-manufacturing PMI fell to 54.5 from 56.4.

On the debt ceiling deal front, the U.S. House Rules Committee voted 7-6 Tuesday to advance a bill dealing with the federal debt ceiling to the full House.

The U.S. House of Representatives could vote on the bill to raise the $31.4 trillion debt ceiling as soon as today.