Investing.com - Crude prices jumped up on Tuesday after data revealed Chinese factories have been busier this month than markets were expecting, which fueled hopes that demand for energy and fuel may be firmer than anticipated in the world's second largest consumer of crude.
In the New York Mercantile Exchange, West Texas Intermediate crude oil for delivery in November traded up 0.94% at $91.72 a barrel during U.S. trading. New York-traded oil futures hit a session low of $90.66 a barrel and a high of $91.89 a barrel.
The November contract settled down 0.85% at $90.87 a barrel on Monday.
Nymex oil futures were likely to find support at $90.41 a barrel, Monday's low, and resistance at $94.12 a barrel, last Tuesday's high.
Crude oil prices received a shot in the arm after a report showed that the preliminary reading of China’s HSBC manufacturing index for September came in at 50.5, ahead of expectations for 50.0 and up from the final reading of 50.2 in August.
The data eased concerns over a slowdown in the world’s second-largest economy.
On Monday, China’s Finance Minister Lou Jiwei said Beijing will not make major policy adjustments in response to individual economic indicators.
The comments were made at a meeting of finance ministers and central bank governors from the G20 countries in Australia over the weekend, according to a statement from the People's Bank of China.
Lou’s comment dampened speculation that China will increase stimulus to meet this year’s growth target of 7.5%.
The Asian nation is the world's second largest oil consumer after the U.S. and has been the engine of strengthening demand.
Meanwhile in the U.S., solid data supported the commodity as well.
Markit Economics reported earlier that its preliminary U.S. manufacturing purchasing managers’ index came in at 57.9 in September, unchanged from August and the highest since April 2010 though shy of market calls for a 58.0 reading
A separate report showed that the Federal Reserve Bank of Richmond’s monthly manufacturing index rose to 14 this month from 12 in August, defying market forecasts for a decline to 10.
Separately, on the ICE Futures Exchange in London, Brent oil futures for November delivery were down 0.15% at US$96.83 a barrel, while the spread between Brent and U.S. crude contracts stood at US$5.11 a barrel.