Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  News  >  Economy & Forex  >  All News

News : Economy & Forex
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies / ForexCryptocurrenciesEconomic EventsPress releases

Oil rises over 1% on U.S. crude stockpile draw, manufacturing activity

share with twitter share with LinkedIn share with facebook
07/01/2020 | 01:04pm EDT
FILE PHOTO: The moon rises behind oil storage tanks in Omsk

By Stephanie Kelly

Oil prices rose more than 1% on Wednesday following a drawdown in U.S. crude inventories from record highs and a string of positive manufacturing data, but a surge in coronavirus cases tempered gains.

Brent crude rose 76 cents, or 1.8%, to settle at $42.03 a barrel. U.S. crude rose 55 cents, or 1.4%, to settle at $39.82 a barrel.

U.S. crude inventories <USOILC=ECI> fell more than expected, dropping by 7.2 million barrels last week, after hitting all-time highs for three consecutive weeks, Energy Information Administration data showed. Analysts had expected a 710,000-barrel drop.

"Saudi imports are down to a trickle and I think this draw is going to be the first in a string of draws," said Phil Flynn, senior analyst at Price Futures in Chicago.

Much of the drawdown was also attributed to refiners ramping up production after reducing runs this spring because of the pandemic, as refinery utilization rates <USOIRU=ECI> rose by 0.9 percentage point to 75.5%, their highest since early April.

Improving global economic activity supported prices as well. U.S. manufacturing activity rebounded in June, hitting its highest level in more than a year as the broader economy reopened.

In China, factory activity grew at a faster clip in June, a private business survey showed. Germany's manufacturing sector contracted at a slower pace in June, while French factory activity rebounded into growth.

In a sign that fuel demand is recovering, tens of millions of barrels of crude and oil products stored on tankers at sea due to the coronavirus crisis are being sold, shipping sources said.

GRAPHIC: Brent and WTI price forecast since June 2019,

However, investors are cautious after a surge in infections in the United States and a warning from the U.S. government's top infectious disease expert that the number could soon double.

Following an agreement to curb supplies, the Organization of the Petroleum Exporting Countries produced an average of 22.62 million barrels per day (bpd) in June, a Reuters survey found, down 1.92 million bpd from May's revised figure.

Graphic: World's top producers slash output, https://fingfx.thomsonreuters.com/gfx/ce/bdwpkaeyopm/world%20top%20prodcers.JPG

(Reporting by Stephanie Kelly in New York, additional reporting by Bozorgmehr Sharafedin in London and Aaron Sheldrick in Tokyo, Editing by Marguerita Choy and Emelia Sithole-Matarise)

Stocks mentioned in the article
ChangeLast1st jan.
LONDON BRENT OIL -1.54% 42.158331 Delayed Quote.-35.04%
WTI -0.85% 39.775 Delayed Quote.-35.40%
share with twitter share with LinkedIn share with facebook
Latest news "Economy & Forex"
07:23aPfizer, BioNTech's coronavirus vaccine candidates get FDA's 'fast track' status
RE
07:18aIndonesia's debt-sharing experiment worries rupiah investors
RE
07:16aNEWS HIGHLIGHTS : Top Company News of the Day
DJ
07:16aNEWS HIGHLIGHTS : Top Global Markets News of the Day
DJ
07:16aNEWS HIGHLIGHTS : Top Financial Services News of the Day
DJ
07:15aQuest sees Q2 revenue above estimates on demand for COVID-19 testing services
RE
07:15aDemand for Chief Diversity Officers Is High. So Is Turnover.
DJ
07:05aMobility Device Inventor Interviewed on Podcast, Radio and TV
SE
07:01aCity Corporation offers residents and businesses opportunity to shape its climate change work
PU
07:01aWarning on unauthorised firm - W&S Brokerage Services Inc. (CLONE)
PU
Latest news "Economy & Forex"