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WTI futures rose 34 cents to $43.10 as of Wednesday morning, while Brent futures rose 37 cents to $45.95 a barrel.
Better-than-expected US manufacturing data also came a day after a private gauge of Chinese manufacturing activity. The headline ISM manufacturing index rose to 56.0, reflecting continued expansion for the US economy. It also marks the third consecutive reading above the 50 level.
On the other hand, in China the Caixin/Markit manufacturing PMI grew strongly, while official data released by the National Bureau of Statistics of China on Aug. 31 showed Chinese services PMI at its highest since 2018.
Meanwhile, a private inventory report by the American Petroleum Institute released on September 1 showed a larger-than-expected drawdown in US crude stockpiles for the week ended August 28. Crude oil inventories declined by 6.36 million barrels to about 501.2 million barrels.
Gasoline stocks also fell by 5.8 million barrels, more than analysts’ estimates of a draw of 3.0 million barrels.
On the supply side US Gulf of Mexico offshore oil output on Tuesday was down by 525,099 barrels per day, or 28.4% of the region’s daily production, the U.S. Department of Interior reported, as energy companies restarted more activity in the aftermath of Hurricane Laura.
The slower-than-expected resumption in output is raising concern over tighter supply according to Kazuhiko Saito, chief analyst at Fujitomi Co.
Elsewhere, oil output by the Organization of the Petroleum Exporting Countries (OPEC) rose by about 1 million barrels per day (bpd) in August, a Reuters survey found. The United Arab Emirates pumped 2.693 million bpd in August, above its OPEC+ quota, after hot weather and people holidaying at home drove associated gas demand for power generation, two sources familiar with the matter told Reuters.
Notably, it will be the sixth consecutive week of drawdown in US commercial crude inventories if the official EIA data confirms the API industry report released on September 1 and would be ultimately bullish for the global crude complex.
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