Crude oil futures rebounded from previous session’s losses and recorded their biggest single-session gain in about two months on Wednesday, buoyed by strong service sector data out of China and positive news on the political front.
West Texas Intermediate crude oil futures for October ended up $2.32, or about 4.3%, at $56.26 a barrel.
On Tuesday, WTI Crude oil futures for October ended down $1.16, or 2.1%, at $53.94 a barrel, the lowest close since August 26.
Data showing an acceleration in China’s service sector growth in August aided sentiment.
The private survey report said activity in China’s services sector expanded at the fastest pace in three months in August.
The Services Purchasing Managers’ Index for the month of August came with reading of 52.1, up from 51.6 in July, despite broader economic headwinds.
Traders were looking ahead to weekly inventory data from the American Petroleum Institute (API) and U.S. Energy Information Administration (EIA).
The API’s weekly oil report will be out later today, while the inventory data from EIA will be released at 10:30 AM ET on Thursday. The reports are delayed by a day due to the Labour Day holiday on Monday.
The EIA’s report last week said crude stockpiles in the U.S. declined by about 10 million barrels in the week ended August 23.
It is widely expected that crude stockpiles may have dropped down by more than 3 million barrels in the week ended August 30.
The material has been provided by InstaForex Company – www.instaforex.com