Investing.com - Crude oil futures bounced off a two-week low on Thursday, after stronger-than-expected data on manufacturing activity out of China and Germany eased concerns over the global economic outlook. Oil prices fell to a two-week low on Wednesday after the minutes of the Federal Reserve’s July meeting indicated support for tapering. The Fed’s stimulus program is viewed by many investors as a key driver in boosting the price of commodities as it tends to depress the value of the dollar. On the New York Mercantile Exchange, light sweet crude futures for delivery in October traded at USD104.27 a barrel during European morning trade, up 0.4%. The October contract settled down 1.2% at USD103.85 a barrel on Wednesday, after hitting a session low of USD103.52 a barrel, the weakest level since August 8. Oil futures were likely to find support at USD102.28 a barrel, the low from August 8 and resistance at USD106.90 a barrel, the high from August 20. Oil prices moved higher after data out of China eased concerns over a slowdown in the world’s second largest economy. Data on Thursday showed that the preliminary reading of China’s HSBC manufacturing purchasing managers’ index rose to a four-month high of 50.1 in August, up from 47.7 in June. Economists had forecast a reading of 48.3. The measure climbed above the 50.0-mark for the first time since April, indicating expansion in manufacturing activity. China is the world's second largest oil consumer after the U.S. and manufacturing numbers are used as indicators for fuel demand growth. A separate report showed that manufacturing activity in Germany expanded at the fastest pace in more than two years in August. The flash German manufacturing purchasing managers’ index rose to 52.0 in August from a final reading of 50.7 in July. Analysts had expected the index to tick up to 51.2. Oil prices were sharply lower on Wednesday after the minutes of the Fed’s July meeting showed that officials were "broadly comfortable" with plans to scale back the bank’s USD85 billion-a-month stimulus program. However, policymakers remain divided over the timing of possible reduction, with almost all committee members agreeing that a change in the asset purchase program was not yet appropriate. Elsewhere, on the ICE Futures Exchange, Brent oil futures for October delivery was little changed to trade at USD109.82 a barrel, with the spread between the Brent and crude contracts standing at USD5.55 a barrel. Brent prices hit USD110.98 a barrel on Monday, the highest level since April 2. London-traded Brent prices have been well-supported in recent sessions amid fears over a disruption to supplies from the Middle East and North Africa. Market players also remained focused on the turmoil in Egypt, amid concerns that the escalating tensions would lead to the closure of the Suez Canal, which transports approximately 2 million barrels of crude oil a day from northern Africa to the U.S. Countries in the Middle East and North Africa were responsible for 36% of global oil production and held 52% of proved reserves in 2012.

Source