MW: Crude oil rises on manufacturing data, ahead of supplies
By Nick Godt, MarketWatch
NEW YORK (MarketWatch) -- Crude oil futures added to gains Wednesday, after a surprise rise in a U.S. manufacturing survey added to enthusiasm about global oil demand ahead of weekly supplies data.
Crude oil for October delivery recently gained $1.86, or 2.6%, to $73.80 a barrel on the New York Mercantile Exchange. It had traded just over $73 ahead of the Institute for Supply Management's report, which showed conditions for U.S. manufacturers made a surprise improvement from the July survey.
Supporting prices earlier, an HSBC survey showed China's manufacturing activity accelerated in August, supported by rising domestic orders.
U.S. stocks surged, with the Dow Jones Industrial Average (DJIA 10,247, +232.39, +2.32%) adding more than 200 points.
Oil had stayed higher Wednesday after payroll processor ADP said U.S. private-sector employment fell 10,000 in August. Read Economic Report for more on payrolls.
On Friday, the government is scheduled to report nonfarm payrolls for August, with economists expecting a drop of 105,000 payrolls, including an expected increase of 25,000 jobs in the private sector.
Still up ahead, the Energy Department will release a report expected to show U.S. crude inventories rose to a one-month high last week.
Analysts polled by Platts expect the Energy Information Administration to show an increase of 1.9 million barrels for the week ended Aug. 27. Gasoline stocks are seen down 1 million barrels, while distillates stocks are forecast to increase 1 million barrel.
Late Tuesday, the American Petroleum Institute, an industry group, estimated crude-oil inventories rose 4.7 million barrels in the week ending Aug. 27, a higher-than-expected increase. Inventories of gasoline declined 899,000 barrels, the API said.
On Tuesday, oil finished the month of August with a loss of 8.9%, its first monthly decline since May, amid mounting concerns about the state of the U.S. economy.
