Upbeat economic data from China and US boosts Brent’s price

Brent futures traded higher on the back of strong economic data in March from the world’s largest oil consumers – China and the US.

PHOTO: Oil pumps with the US dollar and Chinese RMB in the background. Getty Images

Brent’s prices gained after the US and China reported manufacturing Purchasing Managers' Index (PMI) reading above 50 in March, indicating growth in the manufacturing sector.

China's manufacturing PMI gained 1.7% month-on-month to 50.8 in March after five months of contraction, data from China’s National Bureau of Statistics (NBS) showed.

“Oil and commodities are on fire… after China’s manufacturing data hit a six-month high,” Price Futures Group’s senior market analyst Phil Flynn said.

The US manufacturing PMI grew for the first time in over a year to 50.3 in March, from 47.8 in February, after production surged in the country, the US Institute for Supply Management (ISM) reported.

“Oil [Brent] prices surged to a five-month high as the recent ISM data signalled the end of the prolonged US manufacturing recession, which is seen as bullish for oil demand,” SPI Asset Management’s managing partner Stephen Innes remarked.

By Aparupa Mazumder 

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