NYMEX Crude Oil Higher In Asia after Solid China PMI Data

Crude oil prices gained in Asia on Tuesday after strong PMI data from China set the tone on demand prospects.

On the New York Mercantile Exchange, West Texas Intermediate crude oil for delivery in August traded at $105.60 a barrel, up 0.21%, after hiting an overnight session low of $104.67 a barrel and a high of $105.75 a barrel.

"The PMI continued to rise indicating that the tendency towards economic stabilization is basically established. Various policy measures to stabilize growth have taken effect," said Zhang Liqun, a government economist, on the CFLP PMI.

"The HSBC China Manufacturing PMI final reading for June rebounded to 50.7, up from 49.4 in May, and relatively unchanged from the flash reading. This confirms the trend of stronger demand and faster de-stocking," said HSBC chief China economist Qu Hongbin.

Iraqi security forces have launched a counterattack against the Sunni militant insurgency, with reports that tanks and armored vehicles are pushing through to retake cities claimed by the rebels wiping out crude's supply-disruption premium.

Spooking investors, however, was an industry report revealing that the Chicago purchasing managers' index declined to 62.6 this month from 65.5 in May, missing expectations for a 63.0 reading.

(nasdaq.com Edited by Topco)