Oil supported by strong US economic data

Brent’s price has felt some upward pressure as manufacturing activity in the world’s top oil consumer, the US, expanded in January, signalling stronger demand.

IMAGE: Getty Images

The Manufacturing Purchasing Managers' Index (PMI) reading in the US, the world's largest oil consumer, came in at 52.6% in January, up from December’s 47.9%, the Institute for Supply Management (ISM) reported.

January’s manufacturing PMI has registered a 4.7-percentage point increase from December’s figures and pointed to stronger industrial activity in the US, easing concerns over demand growth.

“Economic activity in the manufacturing sector expanded in January for the first time in 12 months, preceded by 26 straight months of contraction,” the ISM report said.

A PMI reading above 50 signals expansion in manufacturing activity — a key indicator of economic health that reflects a pickup in production and new orders, as well as higher inventory levels.

By Aparupa Mazumder

Please get in touch with comments or additional info to news@engine.online