NYMEX crude weaker in Asia ahead of HSBC flash China PMI

Investing.com - Crude oil prices dipped in early Asia on Thursday with demand prospects in focus ahead of a key gauge of manufacturing in China.

In focus in Asian data is the HSBC China November flash manufacturing PMI at 0945 local time (0145 GMT). Investors will be watching for signs of further improvement in the
headline after October's final rose to a three-month high of 50.4.

In the New York Mercantile Exchange, West Texas Intermediate crude futures for delivery in January traded at 74.33 a barrel, down 0.17%, after hitting an overnight session low of $73.92 a barrel and off a high of $75.25 a barrel.

Brent fell 0.5% to $78.10 a barrel on ICE Futures Europe Wednesday.

Overnight, oil prices found some support on Wednesday on reports that Libya may favor cutting output to shore up prices at OPEC's Nov. 27 meeting.

Samir Kamal, Libya's OPEC governor, told Reuters earlier OPEC could agree to take small steps to trim global supply, which drew applause in energy market.

Oil ministers from Iran, Libya, Venezuela, Ecuador and Algeria have asked for action to prevent further price declines, while Saudi Arabia and Kuwait have resisted calls to lower production.

Markets are speculating that a Saudi-backed willingness to let prices slide will prompt U.S. shale producers to halt operations as a result, as such production costs more than traditional drilling.

Once U.S. shale producers table their operations for profitability reason, prices would presumably rise as the global economy absorbs excess supply.

A bearish U.S. stockpile report capped gains.

The U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories rose by 2.6 million barrels in the week ending Nov. 14, surpassing expectations for a decline of 0.8 million barrels.

Total U.S. crude oil inventories stood at 381.1 million barrels as of last week.