Early Thursday Asian trade saw oil prices tick up as traders reacted positively to reports of progress toward a debt-deal that will avoid a US default and strong Chinese manufacturing statistics.
Brent crude futures increased 46 cents, or 0.63%, to US$73.06 per barrel as of 10.12 a.m. BKK time, while US West Texas Intermediate crude advanced 42 cents, or 0.62%, to US$68.51 per barrel, after losing around 6% over the previous two sessions
Oil recovered from its previous decline and rose along with stock markets after the US House of Representatives passed a debt-ceiling bill. Meanwhile, China’s manufacturing PMI grew faster than projected in May, according to the Caixin report.
In May, the Chinese Caixin Manufacturing Purchasing Managers’ index (PMI) hit 50.9, a reading higher than the 50.3% forecast and the 49.5 figure from the previous month. However, this ran counter to official data released earlier this week, which indicated a continuing fall in China’s largest economic engines.
The American Petroleum Institute reported last week that US crude inventories increased by 5,2 million barrels, which, if confirmed by government data, would be the largest increase since February.
With the debt-deal making momentum, investors will be looking ahead to the meeting of OPEC+ this coming weekend in Vienna to discuss the group’s production policy.