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Oil prices rebounds to $70

01 September 2009 07:14 (UTC +04:00)

Bakuâ€“ APA-Economics. Oil rose in New York, reversing earlier losses, after a report showed manufacturing in China expanded in August, easing concern of an economic slump in the worldâ€™s second-largest energy user, Bloomberg reported.
Crude had its biggest decline in two weeks yesterday on concern a slowdown in Chinaâ€™s lending may derail an economic recovery. The Purchasing Managerâ€™s Index for July rose at the fastest pace in 16 months, the Federation of Logistics and Purchasing said in Beijing today. A report later may show U.S. manufacturing expanded for the first time in more than a year.
Crude oil for October delivery rose as much as 34 cents, or 0.5 percent, to $70.30 a barrel in after-hours electronic trading on the New York Mercantile Exchange. It was at $70.17 a barrel at 12:27 p.m. Singapore time. Futures earlier fell as much as 0.6 percent to $69.55 a barrel.
Yesterday, the contract declined $2.78 to $69.96, the biggest drop since Aug. 14. Prices have increased 57 percent this year.
The Tempe, Arizona-based Institute for Supply Management may report today that its manufacturing index climbed to 50.5 in August, according to the Bloomberg survey median. Readings above 50 signal expansion.
Orders placed at factories likely jumped 2.2 percent in July, the most in two years, economists said in a survey ahead of a U.S. Commerce Department report due tomorrow.
An Energy Department report tomorrow will probably show that U.S. crude-oil stockpiles declined last week, a Bloomberg News survey showed. Supplies likely dropped 500,000 barrels from 343.8 million the prior week, according to the median of eight analyst responses in the survey.
Gasoline stockpiles probably fell 1.05 million barrels. Supplies of distillate fuel, including heating oil and diesel, probably increased 675,000 barrels, according to the survey. Inventories are near their highest since 1983.
Heating oil for October delivery was at $1.8104 a gallon, up 0.19 cent, on the Nymex at 12:18 p.m. Singapore time. The September contract yesterday expired at $1.7792 a gallon in New York, the lowest settlement since July 30.
Brent crude oil for October settlement rose as much as 33 cents, or 0.5 percent, to $69.98 a barrel on the London-based ICE Futures Europe exchange. It was at $69.89 at 12:31 p.m. Singapore time. The contract declined $3.14, or 4.3 percent, to end yesterdayâ€™s session at $69.65.
South Korea, Asiaâ€™s third-largest oil buyer, imported more crude in August for the first in four months as drivers increased the use of gasoline amid signs of economic recovery.
Imports rose 2.4 percent to 72 million barrels last month from 70.2 million barrels a year earlier, the Ministry of Knowledge Economy said in an e-mailed statement today.
Asiaâ€™s fourth-largest economy expanded at the fastest pace in almost six years last quarter as exports and household spending jumped. Gasoline consumption gained 16 percent in July, according to state-run Korea National Oil Corp.