Oil prices rebound in Asia as weak manufacturing data in USA, China fuel concerns about demand

05-Feb-14

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 inched up to US$96.5 after falling more than one dollar in US closing deals Monday, and Brent North Sea crude for March to US$106. 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. In China, manufacturing activity slipped to a five-month low in January, confirming a slowdown in the factory sector in the world's top energy consumer.