West Texas Intermediate crude got a boost from positive Chinese PMI data as last month’s print exceeded analyst forecasts at 51.2, according to data provided by the National Bureau of Statistics and China Federation of Logistics and Purchasing. October’s PMI print of 51.4 matches the previous month’s print, but the markets are excited, nonetheless.
The state released data was better than those of HSBC Holdings PLC and Markit Economics, which showed a lower reading of 50.8.
Crude futures bounced of the $91.77 low and has traded upwards the last two sessions. Price action has worked its way back into the consolidating channel, but momentum still remains weak. Brent also has traded up, but the WTI-Brent premium came in a bit at $17.16.
Crude generally trades higher on positive Chinese data because China surpassed the United States in total demand for oil imports and represents about 11 percent of global oil demand.
Oil of the Petroleum Exporting Countries (OPEC) seen a decline in crude production, a to a two-year low last month with large declines in Saudi Arabia and Nigeria. Production dropped by 245K barrels to roughly 30.007 million barrels a day in November. Libya, with Africa’s largest oil reserves, has seen further militant disruption. Production fell last month by 40K barrels per day.
OPEC will hold their quarterly meetings on Wednesday, December 4 to discuss key policies. OPEC nations represent 40 percent of the global oil supply.