West TX Oil above $103.50 after China PMI

West Texas Intermediate crude rose for the second time in three days after manufacturing expanded at the fastest pace this year in China, the world’s second-biggest oil consumer. Brent was steady in London.

Futures gained as much as 0.4 percent in New York. China’s Purchasing Managers’ Index climbed to 50.8 in May, the National Bureau of Statistics and China Federation of Logistics and Purchasing reported in Beijing yesterday. Manufacturing data from Europe and the U.S. are due today. Libya’s Hariga port may reopen shortly after authorities approved salary payments to Petroleum Facilities Guard members who are preventing crude loadings, according to a spokesman at National Oil Corp.

“The Chinese PMI figure came out a little bit better than expected and that gives the market hope that there might be a steadying process going on with the manufacturing sector and the economy generally,” said Ric Spooner, a chief strategist at CMC Markets in Sydney, who predicts investors may sell West Texas contracts if futures advance to about $104.50 a barrel.

Bloomberg

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