AI demand boosts manufacturing as China fuel export halt drives oil prices up

Global industrial manufacturing is seeing growth driven by artificial intelligence demand, particularly in equipment, machinery, and semiconductors. In the eurozone, the manufacturing PMI rose to 52.9 in September, marking the third consecutive month of expansion and the highest output in 55 months. Growth is led by the Netherlands and Germany, with France, Italy, and Spain also showing steady trends. In Asia, South Korea reported strong factory activity growth, with exports reaching a record $120.9 billion in September, largely fueled by semiconductor demand.

Simultaneously, energy markets are experiencing significant volatility. Chinese refineries have reportedly suspended exports of gasoline, diesel, and aviation fuel for October to prioritize domestic supply ahead of winter. This move, combined with geopolitical tensions in the Middle East involving the United States and Iran, has pushed global oil prices higher. Brent crude rose to $102.31 per barrel, while WTI crude increased to $92.87 per barrel following reports of the fuel export halt and increased military presence in the Middle East.