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Crude rebounds amid bottom fishing after European selling

Published 05/02/2012, 08:32 PM
Updated 05/02/2012, 08:33 PM
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Investing.com - Crude oil futures rose in Asian trading on Thursday, as investors snapped up nicely priced positions after oil fell on tepid U.S. jobs data and sluggish European manufacturing reports.

On the New York Mercantile Exchange, light, sweet crude futures for delivery in June traded at USD105.27 a barrel, up 0.05%, off from a session high of 105.44 and up from an earlier session low of USD105.25.

In Europe, the eurozone manufacturing purchasing managers’ index fell to a 34-month low of 45.9 in April, down from 47.7 in March and missing estimates of 46.0.

Factory output in Europe's largest economy, Germany, was off as well, with its manufacturing PMI dropping to 46.2 in April from 46.4 in March and below market estimates for 46.3.

The news sent oil futures falling initially, as a more sluggish European economy will need less oil and fuels to grow.

High unemployment rates across the continent kept the commodity lower.

Meanwhile in the U.S., the news was bearish as well.

U.S. payroll processer ADP said that private-sector, non-farm employment rose by 119,000 in April, the lowest gain since last September, after a 201,000 rise in March.

Analysts were hoping to see a figure around 178,000 in April.

Meanwhile the U.S. Energy Information Administration reported that oil stockpiles rose by 2.84 million barrels to 375.9 million last week, although concerns the U.S. jobs market may be battling fresh headwinds sent oil south until bottom fishers brought it back up in Asian trading.

On the ICE Futures Exchange, Brent oil futures for June delivery were down 0.02% and trading at USD118.36 a barrel, up USD13.09 from its U.S. counterpart.






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