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

News : Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Oil rises on strong factory activity, crude drawdown forecast

share with twitter share with LinkedIn share with facebook
09/01/2020 | 05:47pm EDT
FILE PHOTO: Pump jacks operate at sunset in Midland

Oil prices edged higher on Tuesday as better-than-expected U.S. manufacturing activity data spurred hope for a post-pandemic economic recovery, and as analysts forecast a sixth weekly drawdown in U.S. crude inventories.

Brent crude futures settled up 30 cents at $45.58 a barrel. U.S. West Texas Intermediate futures settled at $42.76 a barrel, up 15 cents. Futures extended gains slightly in post-settlement trade after trade group the American Petroleum Institute (API) said U.S. crude stockpiles fell more than expected in the latest week.

"Everyone is looking for a draw, of one degree or another, in the API this afternoon," said Bob Yawger, director of energy futures at Mizuho in New York, ahead of the data. "The manufacturing numbers and the bullishness around the AstraZeneca virus vaccine added to the optimism," he said.

U.S. crude inventories were forecast to have fallen by nearly 2 million barrels last week, according to analysts in a Reuters poll ahead of weekly data from the American Petroleum Institute. The group said stockpiles fell by 6.36 million barrels in the week. [EIA/S]

U.S. manufacturing activity accelerated to a more than 1-1/2-year high in August amid a surge in new orders, but employment continued to lag, supporting views that the labor market recovery was losing momentum.

The Institute for Supply Management (ISM) said its index of national factory activity increased to a reading of 56.0 last month from 54.2 in July. That was the highest level since January 2019 and marked three straight months of growth.

AstraZeneca has expanded its previous agreement with Oxford Biomedica to mass-produce the British drugmaker's COVID-19 vaccine candidate, as it looks to scale-up supply ahead of a possible fast-track approval from the United States.

Strong Chinese manufacturing data also lifted oil prices, said Jeffrey Halley, a senior market analyst at OANDA.

The Caixin/Markit Manufacturing Purchasing Managers' Index(PMI) showed China's factory activity expanded at the fastest pace in nearly a decade last month, bolstered by the first increase in new export orders this year.

Bulls also pushed up equities, with the MSCI world equity index <.MIWD00000PUS> close to a record peak on Tuesday.

Yet oil, which often moves in tandem with equities, remains reined in by demand concerns.

In a Reuters poll of 43 analysts and economists, global oil demand was seen contracting by between 8-10 million barrels per day (bpd) versus July's 7.2-8.5 million bpd consensus.

(Additional reporting by Sonali Paul and Seng Li Peng in Singapore and Shadia Nasralla in London; Editing by Marguerita Choy and Louise Heavens)

By Jessica Resnick-Ault


Stocks mentioned in the article
ChangeLast1st jan.
ASTRAZENECA PLC 1.69% 8077 Delayed Quote.4.42%
LONDON BRENT OIL -1.61% 40.43 Delayed Quote.-37.71%
MSCI AC WORLD INDEX (STRD, UHD) 0.34% 573.072 Real-time Quote.2.95%
OXFORD BIOMEDICA PLC 0.98% 827 Delayed Quote.26.98%
WTI -1.57% 38.575 Delayed Quote.-36.11%
share with twitter share with LinkedIn share with facebook
Latest news "Economy & Forex"
06:00pSTEEL & TUBE : A Successful Engagement between Steel & Tube and SWEP
PU
05:44pTiffany gets EU antitrust approval for LVMH deal
RE
05:38pMEDIA-Over 50 Tory MPs in northern England press PM for roadmap out of lockdown - The Guardian
RE
05:29pTwilio posts surprise profit on remote-work boost
RE
05:27pAIG names new CEO, plans to spin off life and retirement unit
RE
05:23pBarnes & Noble ending litigation with ex-CEO it accused of harassment
RE
05:17pTSX falls 1.38% to†16,079.55
RE
05:16pU.S. State Department approves $2.37 bln more in potential arms sales to Taiwan -Pentagon
RE
05:16pU.s. state department approves potential sale of $2.37 bln harpoon coastal defense systems to taiwan
RE
05:16pNEWS HIGHLIGHTS : Top Global Markets News of the Day
DJ
Latest news "Economy & Forex"