Oil prices dip as weak figures from China fuel concerns over energy demand

New York's main contract, WTI for March delivery, dipped to US$96.9, while Brent North Sea crude for March was dip to US$106.1. Oil prices eased in Asia, as data showing weak Chinese manufacturing activity fuelled concerns over energy demand in the world's second largest economy, analysts said, as per PTI.

China reported manufacturing activity slipped to a five-month low in January, confirming a slowdown in factory activity. The monthly purchasing managers' index (PMI) declined to 50.5 in January after recording 51 in December and 51.4 in November, according to the government's National Bureau of Statistics and the China Federation of Logistics and Purchasing. Any figure above the 50 mark indicates expansion of manufacturing activity while anything below that signals contraction.

The US Labor Department last month said the US economy added just 74,000 jobs in December, well below the 197,000 expected by analysts. The unemployment rate fell 0.3% point to 6.7%, the lowest since October 2008, mainly due to people dropping out of the labour force.

(plastemart.com Feb 3, 2014)