World oil prices fell on Monday (Tuesday morning GMT ) , after weak manufacturing data in the U.S. and China sparked concerns about demand in two of the world's biggest oil consumer .
New York's main contract , light sweet crude or West Texas Intermediate ( WTI ) for delivery in March , ending the trading session at 96.43 U.S. dollars per barrel , down 1.06 dollars from Friday ( 31/1 ) , AFP reported .
European benchmark , Brent North Sea crude for delivery in March , slipped 36 cents to settle at 106.04 dollars a barrel in London trading .
WTI contract fell sharply in morning trading , along with the weakening U.S. equity markets , after the Institute for Supply Management ( ISM ) reported a sudden deceleration surprising in U.S. manufacturing activity in January .
Purchasing managers' index ( PMI ) slipped to 51.3 ISM of 56.5 in December , as new orders component of almost stalled .
" The first reason is to blame the weather was very cold and there may be something to it . Cooler weather that is not in accordance season slipped all the way down to the south . , But the weather has been said that it rarely impact on manufacturing , " said Robert Brusca , chief economist at FAO Economics .
ISM reports add pressure to the market after China on Saturday ( 1/2 ) reported that manufacturing activity slumped to its lowest level in five months in January , showed decreased activity in the plant world 's biggest energy consumer .
China's manufacturing PMI fell to 50.5 , slightly above the 50 level between expansion and contraction , from 51.0 in December .
Oil markets fell on Monday as " weakening manufacturing report , below the wildest expectations of anyone in the United States , and because the data is private and the Chinese government in recent days , " said Bob Yawger Mizuho Securities .
The new data imply that global demand will not be as strong as previously thought , he said , noting that a large part of the energy demand from the manufacturing sector .
Desmond Chua , an analyst at traders CMC Markets , said investors will continue to look at the data of job creation and U.S. unemployment data for January will be out on Friday ( 7/2 ) .
" Investors will focus on employment data to see whether the disappointing December figure is the one that the U.S. Federal Reserve said would stop the reduction of stimulus , or whether it is the beginning of something bigger , " he said .
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