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Oil prices rebound in Asian trade

February 3, 2014


Oil prices rebounded in Asian trade Tuesday, clawing back some losses after weak manufacturing data in the United States and China fuelled concerns about demand in the world's two biggest oil consumers. US benchmark West Texas Intermediate (WTI) for delivery in March gained 16 cents in afternoon trade to $96.59 after falling more than one dollar in US closing deals Monday. Brent North Sea crude for March was up three cents to $106.07 after shedding 36 cents a day earlier. 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 Labor Department last month said the economy added just 74,000 jobs in December, well below the 197,000 expected by analysts.

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Source: Times of Oman

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