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Crude oil futures edge higher on upbeat Chinese data

Published 09/23/2014, 05:46 AM
Updated 09/23/2014, 05:46 AM
Crude oil rises as China PMI supports

Investing.com - Crude oil futures edged higher on Tuesday, supported by data showing that factory activity in China unexpectedly picked up this month.

On the New York Mercantile Exchange, U.S. crude oil for delivery in November traded at $91.16 a barrel during European afternoon trade, up 0.31%.

Prices dropped 0.85% on Monday to settle at $90.87.

Futures were likely to find support at $89.76 a barrel, the low from September 15 and resistance at $93.60, the high from September 18.

Crude oil prices strengthened 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 reiterated that policymakers in 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.

Elsewhere, on the ICE Futures Exchange, Brent oil for November gained 0.42% to trade at $97.38 a barrel, with the spread between the Brent and crude contracts standing at $6.22 a barrel.

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