MTECHTIPS:-NYMEX crude oil jumps in Asia despite Markit China PMI, API data
Crude oil prices reversed course in Asia on Wednesday after manufacturing data from China and despite downbeat U.S. industry data on stockpiles. The final reading of the Markit manufacturing China PMI came in at 49.4, compared to the flash of 49.6 and May’s final 49.2. “The final reading of the HSBC China Manufacturing PMI pointed to a further decline in the health of the manufacturing sector in June,” Markit economist Annabel Fiddes said. “This was predominantly driven by the sharpest rate of job shedding across the sector since early 2009 while output also fell slightly on the month. On the upside there were some signs of improvement in the shape of renewed increases in total new orders and new export business – suggesting that client demand both at home and abroad is reviving. However, it is likely that more stimulus measures will be required to ensure that the sector can regain growth momentum and to encourage job creation.” Also in China, the June semi-official CFLP manufacturing and services PMI came in at 50.2, just a tad below the 50.3 expected and unchanged from the previous month. Earlier, the American Petroleum Institute said that U.S. crude stocks jumped 1.875 million barrels last week, while distillates rose 263,000 barrels and gasoline supplies gained 334,000 barrels. Later Wednesday, the U.S.Department of Energy will release its more closely-watched figures. On the New York Mercantile Exchange, WTI crude for August delivery jumped 0.76% to $58.77 a barrel.