By Eric Yep Of DOW JONES NEWSWIRES SINGAPORE (Dow Jones)--Crude-oil futures edged upward in Asia Wednesday, with a better-than-expected Chinese manufacturing indicator providing support, as did concerns about stability of Iranian oil supplies after Canada expanded its sanctions against Iranian entities. Meanwhile, a tentative agreement between U.S. refiners and workers averted a potentially disruptive strike that would likely have supported prices, especially of products. On the New York Mercantile Exchange, light, sweet crude futures for delivery in March traded at $98.67 a barrel at 0644 GMT, up $0.19 in the Globex electronic session. March Brent crude on London's ICE Futures exchange rose $0.33 to $111.31 a barrel. China's official Purchasing Managers Index for January rose to 50.5 compared with 50.3 in December. It came in higher than the median forecast of 49.5, which would have indicated a contraction, in a Dow Jones Newswires poll of seven economists. Despite signs of China avoiding an economic hard landing, the market is still factoring in downside risks from a general slowdown in global oil demand. The U.S. Energy Information Administration will issue weekly oil inventory data at 1530 GMT, with analysts expecting U.S. crude stocks to rise by 3 million barrels in the week ended Jan. 27. Consulting firm Ritterbusch and Associates said the crude supply build will likely be even larger. An increase in oil supply, especially in a low-demand environment, could send prices below Tuesday's intraday low of $97.86 a barrel, traders said. The market is also focusing on prolonged Greek debt restructuring talks and fears that Portugal may be next. "This week's trade has only reinforced our view of a difficult, choppy trading environment that could be sustained well into February," Ritterbusch said, adding that the $105 level could be reached within about a month should Iran tensions escalate. Canada expanded its sanctions against Iranian companies and individuals, adding five companies and three individuals to its list of well over 300 entities. Nymex reformulated gasoline blendstock for March--the benchmark gasoline contract--rose 153 points to $2.9062 a gallon, while March heating oil traded at $3.0568, 59 points higher. ICE gasoil for February changed hands at $952.00 a metric ton, up $2.75 from Tuesday's settlement. -By Eric Yep, Dow Jones Newswires; +65 6415 4063; eric.yep@dowjones.com

Source