NYMEX-Crude falls on China data, dollar bounce

Fri Jul 1, 2011 9:41am EDT

 * Weak China manufacturing gauge weighs on oil prices
 * Dollar bounce, stronger index .DXY curbs oil prices
 * Coming up: CFTC positions data at 3:30 p.m. EDT Friday
 NEW YORK, July 1 (Reuters) - U.S. crude futures fell on
Friday as disappointing economic data from China and a bounce
in the dollar pressured oil.
 China's factory sector grew at its slowest pace in 28
months in June as new orders expanded less quickly as weaker
global demand and tight monetary policy at home pinched
production. [ID:nL3E7I104E]
 The official purchasing managers' index fell to 50.9 in
June, below expectations for a reading of 51.3 and down from 52
in May, the China Federation of Logistics and Purchasing said.
The 50-point level demarcates expansion from contractions.
 The dollar index .DXY strengthened even though the euro
earlier hit a three-week high against the dollar before
easing.
 Also limiting crude prices was the prospect of oil soon
hitting the market as the International Energy Agency gears up
its planned release of reserves.
 FUNDAMENTALS
 * On the New York Mercantile Exchange, August crude CLQ1
fell $1.13, or 1.2 percent, to $94.29 a barrel by 9:19 a.m. EDT
(1319 GMT), trading from $93.89 to $95.14.
 * National Iranian Oil Co (NIOC) has said it will cut
supplies for Indian clients in August if the two countries have
still not found a way to make payments for the oil, three
industry sources said. [ID:nL3E7I11K8]
 * Top exporter Saudi Arabia is unlikely to cut crude prices
deeply enough in August to persuade Asian refiners to buy much
more oil, a Reuters poll showed. [ID:nL3E7HU1G3]
 * The oil market will not be affected long term by the
International Energy Agency's release of strategic oil
reserves, Ecuador's oil minister said. [ID:nN1E75T2BQ]
 MARKETS NEWS
 * U.S. stocks were poised to record their best week in
nearly a year as index futures ticked higher and investors
looked ahead to key national manufacturing data, with
confidence growing that the economic slowdown could be
temporary.
 * Gold fell to six-week lows below $1,490 an ounce, hurt by
a drop in oil prices, gains in the dollar and Greece's approval
of an austerity package, which cut the metal's appeal as a
haven from risk. [GOL/]
 * Corn prices plummeted to 3-1/2 month lows on Friday on a
report from the U.S. government which said stocks and sowing
areas were both larger than market expectations.
[ID:nL6E7I11GX]
 UPCOMING DATA/EVENTS
 * U.S. construction spending for May. 10 a.m. EDT (1400
GMT).
 * Commodities Futures Trading Commission positions data at
3:30 p.m. EDT (1930 GMT) on Friday.
9:19     LAST     NET    PCT     LOW    HIGH  CURRENT  DAY AGO
              CHNG   CHNG                      VOL      VOL
CLc1    94.29   -1.13  -1.2%   93.89   95.14   56,323  348,790
CLc2    94.83   -1.13  -1.2%   94.46   95.63   10,633   81,722
LCOc1  110.37   -2.11  -1.9%  110.05  112.48   71,992  193,585
RBc1   2.9272 -0.0420  -1.4%  2.9131  2.9700    6,182   18,984
RBc2   2.8829 -0.0465  -1.6%  2.8717  2.9295    3,737   52,746
HOc1   2.8983 -0.0475  -1.6%  2.8883   2.943    5,458   23,931
HOc2   2.9121 -0.0495  -1.7%  2.9048  2.9560    1,703   58,645
 (Reporting by Robert Gibbons; editing by Jim Marshall)


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