Oil prices plunged sharply on Thursday as the report of China’s manufacturing activity showed some decline in March due to the Covid-19 outbreak that led to another lockdown in some cities. Meanwhile, Biden’s administration is reportedly considering a plan to release its strategic oil reserve.
Earlier this morning, the Chinese official manufacturing Purchasing Managers’ Index for March came in at 49.5, lower than the reading of 50.2 in February and 49.8 expected. Meanwhile, Official non-manufacturing PMI comes in at 48.4, compared to 51.6 in February. China has been battling with the resurgence of Covid-19 outbreak, especially in major cities such as Shenzhen and Shanghai, which have already entered another lockdown.
As global crude oil prices have been running high since late February due to the invasion of Russia in Ukraine and the energy sanction on the Kremlin by western countries mostly, Biden’s administration is reportedly considering a plan to release its strategic oil reserve of 1 million barrels per day for about six months.
As of 11:11 local time in Thailand for the Asian trading session on March 31, 2022, the international benchmark Brent crude dropped 4.53% to $108.30 a barrel. Meanwhile, the West Texas Intermediate fell 5.49% to $101.90 a barrel.
