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Oil market slips on profit taking

World oil prices slipped as dealers took profits from the previous day's bumper gains that were driven by signs of strong US crude demand.

NEW YORK: World oil prices slipped on Thursday as dealers took profits from the previous day's bumper gains that were driven by signs of strong US crude demand.

In New York, the US benchmark, West Texas Intermediate (WTI) for delivery in July, fell 33 cents to $103.74 per barrel.

Brent North Sea crude for July delivery dropped 19 cents to $110.36 in London trade.

Crude futures had rallied on Wednesday following news of tumbling crude reserves in top consumer the United States.

WTI jumped to a one-month peak at $104.07, while Brent struck a two-and-a-half-month high at $110.55.

Despite Thursday's losses, prices had a floor of support helped by signs of a recovery in China's manufacturing sector.

Banking giant HSBC's purchasing managers index for China rose to 49.7 from 48.1 last month, still in contraction territory but close to the 50 PMI threshold between a shrinking and growing industrial sector.

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