Crude Oil Rises After an Industry Report Shows Decline in U.S. Stockpiles

Crude oil advanced for the fifth time in six days in New York as an increase in Chinese manufacturing and a decline in U.S. supply bolstered speculation fuel demand in the world’s two biggest energy consumers will rise. Futures retraced yesterday’s 0.4 percent drop after a purchasing managers’ index showed manufacturing in China, the fastest growing major economy, accelerated for a second month. An Energy Department report today will probably show crude inventories in the U.S. fell last week, according to a Bloomberg News survey of analysts.

“There is still reasonable demand out there, and perhaps the sentiment toward economic optimism is still quite positive,” said Jonathan Barratt, managing director of Commodity Broking Services Pty in Sydney. Crude for November delivery rose as much as 44 cents, or 0.6 percent, to $76.62 a barrel in electronic trading on the New York Mercantile Exchange. It was at $76.45 at 1:37 p.m. Singapore time. Yesterday, the contract decreased 34 cents to settle at $76.18, snapping a four day rally.

Futures are down 3.5 percent this year. For September, the contract has climbed 6.3 percent and is poised for a 1.1 percent gain for the third quarter. An index of China’s manufacturing released today by HSBC Holdings Plc and Markit Economics rose to 52.9, the highest in five months, from 51.9 in August. The data are seasonally adjusted and readings above 50 indicate an expansion. China overtook the U.S. as the world’s largest energy user last year.....Read the entire article.



Share