Summary Brent North Sea crude for July lost 17 cents to stand at $110.38 a barrel after midday in London.
LONDON (AFP) - World oil prices slipped Thursday as dealers took profits from the previous day s bumper gains that were driven by strong US crude demand.
The US benchmark, West Texas Intermediate (WTI) for delivery in July, fell 15 cents to $103.92 a barrel.
Brent North Sea crude for July lost 17 cents to stand at $110.38 a barrel just after midday in London.
Crude futures had rallied on Wednesday following news of tumbling crude reserves in top consumer the United States.
New York crude had jumped to a one-month peak at $104.07, while Brent struck a two-and-a-half-month high at $110.55.
The US Department of Energy said stockpiles plunged 7.2 million barrels in the week ending May 16, confounding traders who expected a gain of 700,000.
Thursday s price losses were meanwhile capped by signs of a recovery in China s manufacturing sector.
Banking giant HSBC said preliminary data from its purchasing managers index (PMI) showed activity in China s factories shrinking at a much slower pace in May than April.
The banking giant s PMI improved to 49.7 from 48.1 last month.
While the figure is below the 50-mark that suggests contraction, it is the second straight month of improvement and will fuel hopes the world s number two economy is picking up after months of slowing.
