Investing.com - 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.
News the Greece had formally missed a debt payment to the IF was accompanied by a request for an extension.
The International Monetary Fund issued the following release on Wednesday in Asia regarding Greece's missed June 30 payment to the Fund.
Mr. Gerry Rice, Director of Communications at the International Monetary Fund (IMF), made the following statement today regarding Greece's financial obligations to the IMF due today:
"I confirm that the SDR 1.2 billion repayment (about €1.5 billion) due by Greece to the IMF today has not been received. We have informed our Executive Board that Greece is now in arrears and can only receive IMF financing once the arrears are cleared.
"I can also confirm that the IMF received a request today from the Greek authorities for an extension of Greece's repayment obligation that fell due today, which will go to the IMF's Executive Board in due course."
Overnight, crude futures surged on Tuesday ending a five-session losing streak, as Iran and a group of western powers extended a deadline for a comprehensive nuclear deal beyond the upcoming Fourth of July holiday this weekend.
In spite of Tuesday's gains, WTI crude still finished June down slightly after opening the month above $60 a barrel. The sell-off erased nearly all of the gains from May when WTI crude rose considerably by 1.64%. WTI crude has been in a holding pattern between $57 and $63 a barrel since the end of April when it skyrocketed more than 23%. Crude futures rose more than 3% in February, before moving lower in March when they fell to a yearly-low at around $44 a barrel.
On the Intercontinental Exchange (ICE), Brent for August delivery jumped more than 2% reaching a session-high of $63.82 a barrel, before falling back slightly to $63.60 on Tuesday.
In Vienna, a U.S. State Department spokesperson said negotiations with Iran over its nuclear capabilities have been extended beyond Tuesday's deadline by seven days to July 7. The delays will provide the two sides with more time for negotiations to reach a long-term solution, State Department spokesperson Marie Harf said.
A comprehensive deal is viewed as bearish for crude, as Iran reportedly has approximately 30 million barrels ready for export shortly after severe economic sanctions are eased if an accord is reached. In addition, Facts Global Energy, an energy consulting firm, forecasts that Iranian oil exports could reach a level of 1.7 million barrels per day within 12 months after sanctions are lifted. When Iran and its negotiating partners announced the framework of a preliminary deal in April, Brent crude futures plunged more than 4% in the hours after the announcement.