Oil trades higher ahead of China PMI
Published Oct 23, 2013 08:51PM ET
On the New York Mercantile Exchange, light, sweet crude futures for December delivery rose 0.41% to USD97.26 per barrel in Asian trading Thursday. The December contract settled lower by 1.46% at USD96.86 per barrel on Wednesday.
Crude sold-off Wednesday after the U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories rose by 5.2 million barrels in the week ended Oct. 18, above expectations for an increase of 3 million barrels, stoking concerns U.S. supply is too high and demand not strong enough.
Total U.S. crude oil inventories stood at 379.8 million barrels, the highest level since June. The report also showed that total motor gasoline inventories declined by 1.8 million barrels, compared to expectations for a drop of 250,000 barrels.
Separately, the Energy Information Administration said the U.S. produced an average of 7.6 million barrels per day in August, the highest rate since 1989.
EIA added that the Bakken, Eagle Ford, Haynesville, Marcellus, Niobrara and Permian shale regions accounted for almost 90% of U.S. oil output and nearly all of the country’s gas production over the past two years.
Later Thursday, the HSBC China flash Purchasing Managers' Index for October is due out. The HSBC final PMI reading for September was 50.2, well below the flash estimate of 51.2. China is the world’s second-largest oil consumer.
Elsewhere, Brent futures for December delivery rose 0.09% to USD107.69 per barrel on the ICE Futures Exchange.
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Written By: Investing.com
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