Oil finds support from latest US economic data

Brent’s price found some support as manufacturing activity in the US expanded in January.

PHOTO: Flags of US and China. Getty Images

Manufacturing Purchasing Managers' Index (PMI) reading in the world's largest oil consumer came in at 50.9% in January, up from 49.2% recorded in the previous month, the Institute for Supply Management (ISM) reported.

The data shows some growth in the country’s manufacturing sector, which can boost demand for commodities like oil. Meanwhile, in China, manufacturing activity contracted in January, the country’s National Bureau of Statistics (NBS) said.

Manufacturing PMI in China came in at 49.1% in January, declining from the 50.1% growth achieved in December 2024, according to the ISM data.

A PMI reading below 50 typically indicates weak economic health and a contraction in the manufacturing sector, which includes production, inventory levels, new orders, etc. It also highlights demand growth concerns, ultimately weighing down on prices of commodities like oil.

By Aparupa Mazumder

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