Oil rises as China data gives recovery sign
BANGKOK—Oil prices inched higher Tuesday in Asia, after sliding on Europe's deepening debt turmoil the day before, as a survey suggested a recovery in China's manufacturing is taking hold.
Benchmark crude for September delivery was up 56 cents at $88.70 a barrel at midafternoon Bangkok time in electronic trading on the New York Mercantile Exchange. The contract tumbled $3.69, or 4 percent, to settle Monday at $88.14 per barrel in New York after Spain's borrowing costs surged, raising the risk that it will require a financial bailout.
Better data on China's manufacturing provided some respite from the wall of bad news in Europe.
Preliminary results of
The individual gauge of factory output showed an expansion in production and was at its highest level in nine months.
HSBC's chief China economist Hongbin Qu said the survey suggests Beijing's attempts to stimulate the world's second-biggest economy are starting to work. "A more meaningful improvement of growth is expected in the coming months when these measures fully filter through."
Brent crude was up 17 cents at $103.42 a barrel on the ICE futures exchange in London.
In other futures trading, heating oil was up little changed at $2.821 a gallon. Gasoline added 0.2 cent to $2.766 a gallon and natural gas fell 1.8 cents to $3.099 per 1,000 cubic feet.