MTECHTIPS:-NYMEX crude gains in Asia as China prices gain, PBOC supports shares
Crude prices gained in Asia on Thursday, lifted by data showing an increase in China consumer prices and on new support to the country’s beleagured share markets. On the New York Mercantile Exchange, WTI crude for August delivery rose 0.90% to $52.12 a barrel. In China, June CPI rose 1.4%, above the 1.3% gain seen, while PPI fell 4.8%, more than the drop of 4.5% expected, indicating an easing in deflationary pressure on the consumer figure, but producer prices are at a four-month low and extend the run of negative growth to a record 40 months, highlighting the problems of widespread industrial overcapacity. Earlier, the People’s Bank of China on Thursday provided liquidity to China Securities Finance Corp via re-lending at its request, state-run Xinhua News Agency reported. The PBOC will also let the CSFC issue financial bonds, including short-term commercial paper in the interbank market, and pledged to continue to provide liquidity support to CSFC via various channels. The Shanghai Composite index gained 2.35% in morning trade. China is the world’s top crude importer. Overnight, WTI crude futures fell considerably on Wednesday extending one of the sharpest three-day declines over the last five years, as energy traders digested a modest U.S. supply build last week and slight progress in Iranian Nuclear negotiations.