Investing.com - Crude oil futures were higher during European morning hours on Thursday, as a report showing China’s manufacturing output expanded for the first time in three months boosted appetite for growth-linked assets.
Oil traders were focusing on closely-watched weekly supply data on U.S. stockpiles of crude and refined products from the U.S. Energy Information Administration later in the day.
On the New York Mercantile Exchange, light sweet crude futures for delivery in December traded at USD86.50 a barrel during European morning trade, gaining 0.3%.
New York-traded oil prices rose by as much as 0.4% earlier in the day to hit a session high of USD86.58 a barrel. Futures fell to a four-month low of USD84.70 a barrel earlier in the week.
Market sentiment found support after official data showed that China’s manufacturing purchasing managers’ index rose to a three-month high of 50.2 in October from September's 49.8. A reading above 50.0 signifies expansion.
A separate report showed that the final reading of China’s HSBC PMI came in at 49.5 in September, an eight month high.
China is the world’s second largest oil consumer and manufacturing numbers are used as indicators for future fuel demand growth.
Prices found further support as refineries along the U.S. East Coast started to resume operations after Hurricane Sandy moved away from the region.
U.S. East Coast refineries accounting for 76% of the 1.29 million barrels a day of capacity in Sandy’s path have restored operations or are in the process of doing so.
Oil traders looked ahead to weekly data from the U.S. government on oil supplies later in the day to gauge the strength of demand from the world’s largest oil consumer.
The release of the report was postponed from Wednesday, due to delays related to Hurricane Sandy.
The data was expected to show that U.S. crude oil stockpiles increased by 1.5 million barrels last week, while gasoline inventories were forecast to rise by 0.16 million barrels.
The American Petroleum Institute, an industry group, said Tuesday that U.S. crude inventories rose by 2.12 million barrels last week, while gasoline stocks decreased by a modest 0.17 million barrels.
The U.S. is the world’s biggest oil consuming country, responsible for almost 22% of global oil demand.
Euro zone developments also remained in focus. Investors remained cautious amid uncertainty over when Spain may request a bailout and whether Greece will secure the next tranche of its bailout funding.
Market players were now looking ahead to a series of important political and economic events set to unfold in early November.
Later in the day, the U.S. was to release the ADP report on nonfarm payrolls, as well as the weekly government report on initial jobless claims. In addition, the Institute of Supply Management was to publish data on U.S. manufacturing activity.
On Friday, the U.S. will release a closely-watched report on U.S. non-farm payrolls, to gauge the strength of the U.S. labor market.
Political developments were likely to take center stage next week, with the U.S. presidential election on November 6 and the start of the Chinese Communist Party Congress on November 8, where a once-in-a-decade leadership change was to take place.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for December delivery were little changed to trade at USD108.69 a barrel, with the spread between the Brent and crude contracts standing at USD22.18 a barrel.
Oil traders were focusing on closely-watched weekly supply data on U.S. stockpiles of crude and refined products from the U.S. Energy Information Administration later in the day.
On the New York Mercantile Exchange, light sweet crude futures for delivery in December traded at USD86.50 a barrel during European morning trade, gaining 0.3%.
New York-traded oil prices rose by as much as 0.4% earlier in the day to hit a session high of USD86.58 a barrel. Futures fell to a four-month low of USD84.70 a barrel earlier in the week.
Market sentiment found support after official data showed that China’s manufacturing purchasing managers’ index rose to a three-month high of 50.2 in October from September's 49.8. A reading above 50.0 signifies expansion.
A separate report showed that the final reading of China’s HSBC PMI came in at 49.5 in September, an eight month high.
China is the world’s second largest oil consumer and manufacturing numbers are used as indicators for future fuel demand growth.
Prices found further support as refineries along the U.S. East Coast started to resume operations after Hurricane Sandy moved away from the region.
U.S. East Coast refineries accounting for 76% of the 1.29 million barrels a day of capacity in Sandy’s path have restored operations or are in the process of doing so.
Oil traders looked ahead to weekly data from the U.S. government on oil supplies later in the day to gauge the strength of demand from the world’s largest oil consumer.
The release of the report was postponed from Wednesday, due to delays related to Hurricane Sandy.
The data was expected to show that U.S. crude oil stockpiles increased by 1.5 million barrels last week, while gasoline inventories were forecast to rise by 0.16 million barrels.
The American Petroleum Institute, an industry group, said Tuesday that U.S. crude inventories rose by 2.12 million barrels last week, while gasoline stocks decreased by a modest 0.17 million barrels.
The U.S. is the world’s biggest oil consuming country, responsible for almost 22% of global oil demand.
Euro zone developments also remained in focus. Investors remained cautious amid uncertainty over when Spain may request a bailout and whether Greece will secure the next tranche of its bailout funding.
Market players were now looking ahead to a series of important political and economic events set to unfold in early November.
Later in the day, the U.S. was to release the ADP report on nonfarm payrolls, as well as the weekly government report on initial jobless claims. In addition, the Institute of Supply Management was to publish data on U.S. manufacturing activity.
On Friday, the U.S. will release a closely-watched report on U.S. non-farm payrolls, to gauge the strength of the U.S. labor market.
Political developments were likely to take center stage next week, with the U.S. presidential election on November 6 and the start of the Chinese Communist Party Congress on November 8, where a once-in-a-decade leadership change was to take place.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for December delivery were little changed to trade at USD108.69 a barrel, with the spread between the Brent and crude contracts standing at USD22.18 a barrel.