Oil prices tumble on poor China data

World oil prices dived today following weak manufacturing data in China, which is the world's leading consumer of energy.
Brent North Sea crude for delivery in September sank USD 1.52 to stand at USD 106.90 a barrel in late afternoon London deals.
New York's main contract, West Texas Intermediate (WTI) for delivery in September, slumped USD 1.92 to USD 105.31 a barrel.
"Crude oil is trading lower today, weighed down by concerns over China," said analyst Fawad Razaqzada at trading firm GFT Markets.
"However, manufacturing PMI in the eurozone rose to a two-year high, suggesting that the single currency bloc could finally pull out of recession."

Global banking giant HSBC said its preliminary purchasing managers index (PMI) for China hit an 11-month low of 47.7 for July, down from 48.2 in June.

A reading above 50 indicates growth and anything below points to contraction. Its final reading will be released at the start of next month.
The result is the latest in a string of data suggesting previous double-digit growth rates in the world's top energy consumer are a thing of the past as Beijing looks to shift its income source from exports to domestic consumption.
On a brighter note, private business across the eurozone returned to growth in July for the first time in 18 months, a key survey indicated today.

Markit's Eurozone Composite Purchasing Managers Index logged 50.4 points, above the 50-mark signalling growth, and a bigger-than-expected rise according to analysts after posting 48.7 points in June.
Elsewhere, investors digested the release of the weekly crude stockpiles data in top oil consumer the United States.
The US government's Energy Information Administration (EIA) revealed that American crude reserves sank 2.8 million barrels in the week to July 19.