Crude-oil futures traded sideways in Asian trade Thursday as oil markets shrugged off a weak reading of Chinese manufacturing data. On the New York Mercantile Exchange, light, sweet crude futures for delivery in December CLZ4, +0.09% traded at $74.70 a barrel, up $0.12 in the Globex electronic session. January Brent crude LCOF5, +0.08% on London's ICE Futures exchange rose $0.20 to $78.30 a barrel. Chinese factory activity fell to its lowest level in six months in November, with the preliminary HSBC China Manufacturing PMI falling to 50.0, compared with a final reading of 50.4 in October. The reading suggests that "manufacturing activity has continued to cool, but it also provided some hope that downward pressure on domestic demand has eased up so far in the fourth quarter," Capital Economics said in a report. Oil prices were also not impressed by a surprise increase in U.S. crude-oil stockpiles in the week ended Nov. 14 on the back of higher crude imports, although BNP Paribas noted that total U.S. hydrocarbon stocks were essentially unchanged. Oil ends below $75 as rebound fizzles The Nov. 27 meeting of the Organization of the Petroleum Exporting Countries is expected to be the main driver of oil prices going forward. Morgan Stanley said it was pessimistic about OPEC intervention in oil markets as recently as one month ago, but now puts a two-thirds probability on OPEC either calling for stronger enforcement of its existing quota with a production cut, or an outright reduction of the quota. "The market has hit price levels and timelines that are consistent with prior reductions in the quota," analyst Adam Longson said. He cited reasons such as revenue losses hurting large producers, well-informed trading houses such as Vitol saying the probability of OPEC cuts have risen, and more rational dialogue among OPEC members. Meanwhile, the U.S. Senate defeated a bill to authorize construction of the controversial Keystone XL pipeline, dealing a blow to Canadian oil export plans. Nymex reformulated gasoline blendstock for December RBZ4, -0.21% -- the benchmark gasoline contract--fell 53 points to $2.0385 a gallon, while December diesel traded at $2.3679, 89 points higher. ICE gasoil for December changed hands at $693.25 a metric ton, down $4.25 from Wednesday's settlement. Source: MarketWatch
