Oil prices mixed in Asian trade
Singapore, Nov 3 (AFP) Oil prices were mixed in Asia today as dealers focused on a slew of global manufacturing data for clues about demand growth, while a strong dollar capped any gains, analysts said.
US benchmark West Texas Intermediate (WTI) for December delivery fell four cents to USD 80.50 while Brent crude for December was up four cents at USD 85.90 in mid-morning trade.
“The focus right now is on the manufacturing data to be released. We are looking for signs of industrial growth, which will in turn mean greater crude demand,” Daniel Ang, investment analyst at Phillip Futures in Singapore, told AFP.
Markit’s purchasing managers index (PMI) for the eurozone, Germany and the United States are due to be released later Monday, along with those of France, Italy and Spain.
The US Institute of Supply Management is also slated to release its own index for the US manufacturing sector.
China’s official PMI came in at 50.8 in October compared with 51.1 in September, the government said on Saturday, raising concerns about slowing growth in the world’s second-largest economy and top energy consumer.
The index tracks manufacturing activity in China’s factories and workshops and is a closely watched indicator of the health of the economy. A reading above 50 indicates growth.
Singapore’s United Overseas Bank said a stronger US dollar was putting downward pressure on oil prices.
The greenback bought 112.71 yen in morning trade compared with USD 112.35 yen in New York late Friday.
A stronger greenback makes dollar-priced oil expensive for buyers using weaker currencies, denting demand and pushing prices lower. (AFP)