Oil Dips On Easing Supply Concerns; China Data Supports
NEW YORK, July 1 (Reuters) - Crude oil prices dipped slightly on Tuesday on easing concerns of supply disruptions due to the conflicts in Iraq and Ukraine, whilst gaining some support from upbeat manufacturing data in China, the world's second-biggest oil consumer.
"The market has been on a downtrend since peaking last week," said Dominick Chirichella of the Energy Management Institute in New York. "The latest data from China is interesting: it's not going to result in a big surge in oil demand anytime soon, but it's a baby step in the right direction."
China's factory activity hit multi-month highs in June, official and private surveys showed, reinforcing signs its economy is steadying as the government steps up policy support.
Brent crude lost 7 cents to end at $112.29 a barrel, the lowest settlement since June 12.
U.S. oil lost 3 cents to settle at $105.34 a barrel, also the lowest point since June 12.
Oil markets have for weeks been rattled by supply concerns due to the Ukraine crisis, while a takeover of large areas of Iraq by Sunni militants has stoked fears of disruption in exports from OPEC's second-biggest producer.
Although oil exports have not been disrupted so far, the geopolitical uncertainty is likely to keep supporting prices in the short term, analysts said.
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