WTI crude closes 2% lower on demand concerns

Oil drilling rigs

Crude oil prices fell today, Jan. 27, as markets assessed economic data that showed an unexpected contraction in industrial activity in the world's second-largest economy.

Brent crude futures for March delivery fell 1.8%, or $1.42, to close at $77.08 a barrel, after touching $76.30 earlier. WTI crude futures for March delivery fell 2%, or $1.49, to $73.17 a barrel, after touching $72.38 earlier in the session.

Data released by the National Bureau of Statistics showed that China's manufacturing purchasing managers' index fell to 49.1 points in January, from 50.1 points in December, contrary to expectations that it would remain unchanged.

Markets saw downward pressure in the technology and energy sectors, after Chinese company DeepSeek launched a low-cost artificial intelligence model, which raised concerns among investors in US energy companies who had bet on demand from data center operations.