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Brent crude futures for October, expiring on Thursday, rose 45
cents, or 0.5%, to $86.31 a barrel by 1004 GMT. The more active
November contract was up 25 cents, or 0.3%, at $85.49.
U.S. West Texas Intermediate crude futures for October rose 29
cents, or 0.4%, to $81.29.
U.S. government data on Wednesday showed the country's crude
inventories fell by a larger than expected 10.6 million barrels
last week, depleted by high exports and refinery runs.
Meanwhile, analysts expect Saudi Arabia to extend a voluntary
oil production cut of 1 million barrels per day (bpd) into
October, adding to cuts put in place by the Organization of the
Petroleum Exporting Countries (OPEC) and allies led by Russia, a
combination known as OPEC+.
"With Brent prices having stalled in the mid-$80s ... the
prospect of those Saudi barrels returning to the market any time
soon looks slim and the impact is increasingly being felt across
the world as commercial stock levels of crude and fuel products
continue to drop," said Saxo Bank analyst Ole Hansen.
Weak Chinese factory data weighed on prices, however.
China's manufacturing activity shrank again in August, an
official factory survey showed on Thursday, fuelling concerns
about weakness in the world's second-biggest economy.
The official purchasing managers' index (PMI) rose to 49.7 from
49.3 in July, the National Bureau of Statistics said, but it
remained below the 50-point level. A reading above 50 points
represents expansion from the previous month.
Investors are also awaiting inflation numbers as measured by
U.S. personal consumption expenditures (PCE), which will be
released on Thursday and is the U.S. Federal Reserve's preferred
gauge of inflation.
Meanwhile, the U.S. government revised down its gross domestic
product (GDP) growth to 2.1% in the past quarter, from the 2.4%
pace reported last month, and data released on Wednesday showed
private payroll growth slowed significantly in August.
The Fed can end its cycle of increases to interest rates if the
labour market and economic growth continue to slow at the
current gradual pace, the former president of the Boston Fed
said on Wednesday.
(Reporting by Ahmad GhaddarAdditional reporting by Jeslyn Lerh
in SingaporeEditing by David Goodman)
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