Oil Rises on Strong Chinese Data

West Texas Intermediate crude rebounded from its lowest close in more than a week after manufacturing expanded at the fastest pace this year in China, the world’s second-biggest oil consumer. Brent slipped as Libya said one of its ports would reopen.

Futures gained as much as 0.6 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 in Beijing reported yesterday. Libya’s Hariga port is set to reopen after authorities approved salary payments to Petroleum Facilities Guard members who are preventing crude loadings, according to National Oil Corp.

“The Chinese manufacturing PMI came out better than expected, indicating the continued improvement of the economy,” Michael Poulsen, an analyst at Global Risk Management Ltd. in Middelfart, Denmark, said by e-mail.

WTI for July delivery increased as much as 64 cents to $103.35 a barrel in electronic trading on the New York Mercantile Exchange and was at $102.82 at 12:35 p.m. London time. It closed at $102.71 on May 30, the lowest settlement since May 20. The volume of all futures traded was about 34 percent below the 100-day average for the time of day. Prices are up 4.5 percent this year.

Brent for July settlement erased earlier gains of 0.4 percent to trade 19 cents lower at $109.22 a barrel on the London-based ICE Futures Europe exchange. The European benchmark crude traded at a premium of $6.41 to WTI, compared with $6.70 on May 30.

via Bloomberg

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza