Oil dips on downbeat economic data from US and China

Brent futures declined as weaker economic data in April from the world’s top oil consumers, China and the US disappointed the global oil market.

PHOTO: Flags of the US and China. Getty Images

Manufacturing Purchasing Managers' Index (PMI) reading in the US dipped to 49.2 in April, after briefly expanding last month to 50.3, the US Institute for Supply Management (ISM) reported.

China's manufacturing PMI dropped to 50.4 in April from 50.8 in March, data from China’s National Bureau of Statistics (NBS) showed.

A PMI reading below 50 typically indicates weak economic health and a contraction in the manufacturing sector, which includes production and new orders. China's April manufacturing PMI remained above 50, but a month-on-month fall in the reading has raised some concerns about the country's economic health.

Currently, the biggest challenge in China’s economy is “slowing growth”, SPI Asset Management’s managing partner Stephen Innes remarked.

By Aparupa Mazumder 

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