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Oil prices were mixed in Asian trade today weighed down by concerns over weak manufacturing data from the US and China, the world’s top two economies.
US benchmark West Texas Intermediate (WTI) crude for delivery in March gained 21 cents in mid-morning trade to $96.64 after falling more than one dollar in the US closing deals yesterday. Brent North Sea crude eased six cents to $105.98.
The Institute for Supply Management (ISM) had yesterday 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 had said on Saturday that the 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 had last month said that the economy added just 74,000 jobs in December, well below the 197,000 expected by analysts.
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