Crude Higher On China Demand Optimism Following PMIs

Oil has been steadily rising again since last week. Prices are up 0.5% during the APAC session after rising close to 1.5% on Tuesday, as China’s PMIs came in stronger than expected. WTI is currently trading around $77.45/bbl and Brent $83.90, both are close to their intraday highs. The USD index is down slightly.

• Brent has exceeded its 50-day simple moving average again and approaching the 100-day. WTI is approaching the 50-day MA, as it has underperformed Brent due to rising US crude stocks. WTI short-term support is at $73.80, the February 22 low. Moving average studies are in a bear-mode, thus the risks to WTI are pointing to the downside.
• API reported another large crude inventory build in the US of 6.2mn barrels after 9.89mn the previous week. Distillate fell 0.3mn and gasoline -1.8mn. The data reflects continued refining issues. The official EIA data is released later today. WTI reached an intraday low of $76.55 following this data and ahead of the robust February China PMI data, which bolstered commodities generally.
• Later today the February Global S&P manufacturing PMIs print and the US manufacturing ISM, which is forecast to rise to 48, and construction data. The Fed’s Kashkari is participating in a moderated discussion.