NYMEX crude down slightly despite uptick in China official PMI

Investing.com - Crude oil held slightly lower in early Asia on Friday as investors noted a slight uptick in China's official manufacturing gauge, but remain focused on over supply and demand prospects.

On the New York Mercantile Exchange, WTI crude for June delivery eased 0.10% to $59.57 a barrel.

Crude futures continued its upward swing on Thursday ending the month of April on a high note, as OPEC supply leaped to its highest level in more than two years and a lower than expected U.S. weekly buildup remained in focus.

Earlier, Japanese consumer price data showing a faster than expected pace as other data was mixed and more crucial wages data lay ahead.

The data was part of a busy suite due at the end of the week from around the region, even with many countries marking the May 1 labor day, including China which still posted official manufacturing figures as well as services.

USD/JPY changed hands at 119.66, up 0.23%,while AUD/USD traded at 0.7890, down 0.20%, even after better than expected China official manufacturing data. EUR/USD was down 1.1210, down 0.12%.

In Japan, core consumer prices rose 2.2% year-on-year in March, a touch higher than the 2.1% seen. As well, the jobless rate ticked down to 3.4%, better than the 3.5% expected.

But household spending dropped for the 12th straight time, falling 10.6%, although better than the 12.1% drop forecast by analysts.

Official China manufacturing data for April held at 50.1, better than an expected show, and just at the expansion zone. Non manufacturing, or services fell to 53.4 in April from 53.7 in March.

On the Intercontinental Exchange (ICE), Brent crude for June delivery rose 0.82 or 1.25% to settle at 66.66 on Thursday.

Brent also closed the month up more than 18%, as OPEC oil supply reached its highest level since November, 2012. A survey by published by Reuters on Thursday found that output increased by 70,000 barrels per day to 31.04 million barrels. Increases in production in Iraq, Libya and Nigeria boosted OPEC supply levels.

Output in Saudi Arabia fell below record levels from March, but still remained above 10 million barrels per day.

WTI crude, meanwhile, continued its move toward $60, one day after the Energy Information Administration said in its weekly supply report that crude inventories increased by 1.9 million barrels for the week that ended April 24.

The buildup was far below consensus estimates of a 3.3 million barrel increase.The build pushed up current U.S. crude inventories to 490.9 million barrels, the most in at least 80 years. A week earlier, crude inventories surged by 5.3 million barrels for the week that ended April 17 -- above forecasts of a 3.2 million build.

In addition, crude inventories at the Cushing Oil Hub in Oklahoma fell by 514,000 on the week, well below forecasts of a 400,000 gain. The decline marked the first draw at the largest crude storage facility in the U.S. since last November.

Energy investors turn their attention to Friday's weekly rig count from oil services firm Baker Hughes (NYSE:NYSE:BHI). Last week, the number of oil rigs nationwide fell by 31 to 703 -- its lowest level since 2010. The weekly rig count has declined for 20 consecutive weeks.