ND:WTI oil futures lower after China PMIs, U.S. supply data ahead
Investing.com -
Investing.com - U.S. oil futures edged lower on Tuesday, after data on China's manufacturing sector painted a mixed picture of the world's second largest economy.
On the New York Mercantile Exchange,West Texas Intermediate c rude for delivery in May held in a range between $101.02 a barrel and $101.56 a barrel.
Nymex oil last traded at $101.30 a barrel during European morning hours, down 0.28%, or 28 cents. The May contract eased down 0.09%, or 9 cents, on Monday to settle at $101.58 a barrel.
Futures were likely to find support at $100.03 a barrel, the low from March 27 and resistance at $102.24 a barrel, the high from March 28.
Data released earlier showed that China's final HSBC Purchasing Managers Index ticked down to an 18-month low of 48.0 in March from a final reading of 48.5 in February.
The report came after China's official manufacturing purchasing managers' index inched up to 50.3 in March from 50.2 in February.
China is the world's second largest oil consumer and manufacturing numbers are used as indicators for fuel demand growth.
Meanwhile, investors looked ahead to weekly supply data out of the U.S. to gauge the strength of oil demand from the world's largest consumer.
The American Petroleum Institute will release its inventories report later in the day, while Wednesday's government report could show crude stockpiles rose by 2.5 million barrels in the week ended March 28.
The data was also expected to show that distillate stockpiles, including heating oil and diesel, decreased by 650,000 barrels, while gasoline stockpiles were forecast to drop by 1.5 million barrels.
Investors are also awaiting Friday's U.S. nonfarm payrolls report for March, amid expectations for jobs growth of 200,000, after 175,000 jobs were added in February.
A recent batch of upbeat U.S. economic data added to hopes that the slowdown in economic activity seen at the start of the year would be temporary.
On Monday, Federal Reserve Chair Janet Yellen said that there is still room for the central bank to help the economy and reiterated that the Fed's commitment to economic stimulus will still be needed for some time.
Elsewhere, on the ICE Futures Exchange in London, Brent oil for May delivery eased down 0.04%, or 4 cents, to trade at $107.72 a barrel, while the spread between the Brent and U.S. crude contracts stood at $6.42 a barrel.
