Crude Gains On China, US Economic Data

Crude oil rose above the $105 a barrel level on Thursday as economic data from the United States and China brightened the outlook for demand in the world`s two largest oil consumers, while the US Federal Reserve meeting showed no signs of reducing stimulus any time soon.

Manufacturing unexpectedly strengthened in China to 50.3 last month exceeding the 49.8 median forecast, while the US gross domestic product expanded more than forecast during the second quarter at a 1.7% annualized rate exceeding the 1% gain predicted by economists.

- Crude is trading around $105.53 a barrel after rising $0.50

- Brent is trading around $107.87 a barrel after rising $0.17

Also supporting oil prices was concerns over supplies from the Middle East and North Africa as well as data showing US private employers kept adding jobs in July fueling optimism over the outlook for the US economy, while oil inventories at the Cushing, Oklahoma, delivery point fell for a fifth straight week to the lowest since April 2012.

However, US crude inventories increased by 431,000 barrels last week, said the Energy Information Administration yesterday. Supplies were estimated to fall by 2.45 million barrels. Gasoline stockpiles rose by 770,000 barrels while distillate inventories, including heating oil and diesel, slid by 466,000 barrels.

- Natural gas is trading at $3.426 per cubic feet after falling 0.58%

- Gasoline is trading at $2.9878 a gallon after falling 0.28%

- Heating oil is trading at $3.0588 a gallon after rising 0.12%

Some caution may be seen today and tomorrow ahead of policy statements from the Bank of England (BoE) and the European Central Bank (ECB) later in the day while the US will release on Friday the key jobs report that will help gauge the demand outlook for oil from the world’s largest oil consumer.