Oil weighed down by US data

Comment on this story
IOL pic oct28 oil barrels . .

Singapore -

Oil prices were mixed in Asian on Tuesday, weighed down by concerns over weak manufacturing data from the United States and China, the world's top two economies.

The US benchmark, West Texas Intermediate (WTI) for delivery in March, gained 21 cents in mid-morning trade to $96.64 after falling more than one dollar in US closing deals on Monday.

Brent North Sea crude eased six cents to $105.98.

The Institute for Supply Management (ISM) on Monday reported a sharp slowdown in US manufacturing activity in January.

The ISM's purchasing managers index (PMI) sank to 51.3 from 56.5 in December, with the new orders component almost stalling.

Any figure above the 50 mark indicates expansion of manufacturing activity while anything below that signals contraction.

China said Saturday that manufacturing activity slipped to a five-month low in January, confirming a slowdown in the factory sector in the world's top energy consumer.

Michael McCarthy, chief market strategist at CMC markets in Sydney, said WTI prices are now “fairly steady” after the initial reaction to the ISM reading.

Investors will also be keeping an eye on upcoming US jobs data for January, which is due out on Friday.

The US Labour Department last month said the economy added just 74 000 jobs in December, well below the 197 000 expected by analysts. - Sapa-AFP


sign up
 
 

Comment Guidelines



  1. Please read our comment guidelines.
  2. Login and register, if you haven’ t already.
  3. Write your comment in the block below and click (Post As)
  4. Has a comment offended you? Hover your mouse over the comment and wait until a small triangle appears on the right-hand side. Click triangle () and select "Flag as inappropriate". Our moderators will take action if need be.