The price of US oil fell below $93 a barrel today as traders scaled back their optimism about the US economy following a report that showed shrinking factory activity.
Benchmark oil for July delivery fell 57 cents to $92.88 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose $1.48 to close at $93.45 a barrel on the Nymex yesterday.
Brent crude, a benchmark for many international oil varieties, fell 22 cents to $101.84 a barrel on the ICE Futures exchange in London.
Data showing that manufacturing activity in the US slowed in the month of May boosted energy markets yesterday.
Traders believe the weaker the economy, the less likely it is for the US Federal Reserve to pull back on its monetary stimulus measures.
The Institute for Supply Management said its index of manufacturing activity fell to 49 last month from 50.7 in April. Readings below 50 indicate a contraction.
