A large draw in total U.S. crude oil stocks reported by the API late yesterday has resulted in a light round of short covering in a market that remains oversold. As of this morning the crude oil market is still in positive territory but well off of the overnight highs hit after the API data release as the industry awaits the more widely followed EIA oil inventory snapshot.
China`s manufacturing data was in line with expectations yet under the key pivot level of 50 with a 49.7 print. Generally speaking, a reading of under 50 would indicate a contracting manufacturing sector rather than expanding
Crude oil prices neared four-month lows on Friday, set for their fourth straight week of declines, after data showed a contraction in China's factory sector and the dollar rose against a basket of currencies.