Crude oil prices bounced back from its lowest closing level in almost a month on Tuesday, driven by the downbeat Chinese and US data, signaling signs that demand may drop in the future.
The North American West Texas Intermediate (WTI) climbed 0.18% higher to $96.90 per barrel on the New York Mercantile Exchange. At the same time the European benchmark Brent crude for March settlement slipped by 0.39% lower, trading at $106.01 a barrel on the ICE Futures Europe exchange.
Crude – Chinese Manufacturing Sector
China’s Manufacturing Purchasing Managers’ Index (PMI) declined to a six-month low of 50.5 in January, compared to the previously reading of 51.0 seen in December.
For the first time in six months, China’s manufacturing sector contracted, highlight the government’s vow to keep the nation’s economy steady.
HSBC’s final PMI for January weakened, standing at 49.5, dropping from the previous reading of 49.6 seen last week. Any reading above 50 indicated the rise in manufacturing activity, while any reading below 50 points a contraction.
Crude- US Data
In the US, the manufacturing sector expanded in January at its slowest pace in eight months, coming in at 51.3, missing estimates and down from the previous reading of 56.5 seen in December; according to reports complied by the institute for Supply Management (ISM) manufacturing PMI.
US Supplies
Crude Stockpiles reports are expected to be released by the Energy Information Administration on Wednesday, with a forecast of a rise of 2.25 million barrels in the previous week, according to analysts.
While reports for gasoline stockpiles is expected to show a rise by 1.35 million barrels in the week ended Jan 31, according to market analysts forecasts.
Visit www.hymarkets.com to find out more about our products offering and start trading today with only $50 using the latest trading technology today.
The post Crude Oil Prices Bounces Back From Losses appeared first on | HY Markets Official blog.
Article provided by HY Markets Forex Blog
