2023.03.0119:20:00UTC+00Oil Futures Settle Notably Higher

Crude oil futures settled at near 2-week high on Wednesday, despite data showing a jump in crude inventories in the week ended February 24th.

Upbeat China factory data raised the outlook for energy demand, and contributed to the surge in oil prices.

West Texas Intermediate Crude oil futures for April ended higher by $0.64 or about 0.8% at $77.69 a barrel, the highest settlement since February 16.

Brent crude futures were up $0.93 or 1.11% at $84.38 a barrel a little while ago.

Data released by Energy Information Administration (EIA) showed crude stockpiles rose by 1.165 million barrels in the week ended February 24, rising for a 10th straight week. The increase was nearly 4 times over the level seen a week earlier.

Gasoline inventory dropped by 0.874 million barrels last week, as against an expected increase of 0.464 million barrels, while distillate stockpiles rose by 0.179 million barrels versus the expected drop of 0.462 million barrels.

Data from the American Petroleum Institute showed that stocks in the United States, the world's biggest oil consumer and producer, rose by 6.2 million barrels in the week ended February 24.

A Reuters survey found that OPEC pumped 28.97 million barrels per day (bpd) in February, up by 150,000 bpd from January.

China's manufacturing sector expanded for the first time in seven months in February, driven by the upturns in production and new orders, suggesting a strong rebound in the first quarter following the easing of pandemic related restrictions.

At 51.6, the Caixin manufacturing Purchasing Managers' Index rose from 49.2 in the previous month, survey results from S&P Global showed Tuesday. This was the first expansion in seven months and the score was the second-highest since May 2021.

Elsewhere, official PMI survey results from the National Bureau of Statistics also showed a strong improvement in private sector activity. The factory PMI surged to 52.6 from 50.1 a month ago. At the same time, the non-manufacturing PMI advanced to 56.3 from 54.4.