Oil continued its gains for the second consecutive session on Wednesday, bolstered by a strong surge in manufacturing in China, the world's largest crude importer, which enhanced global fuel demand expectations.
An official index released today indicated that manufacturing activity in China expanded at its fastest pace in over a decade in February, raising hopes that the recovery in the country could offset global slowdown and increase oil demand.
As of 0910 GMT, Brent crude rose by 45 cents, or 0.5%, to $83.90 per barrel. West Texas Intermediate (WTI) crude also increased by 49 cents, or 0.6%, to $77.54.
While the official Purchasing Managers' Index (PMI) for China's manufacturing sector climbed to 52.6 last month from 50.1 in January, a private survey also showed an improvement in manufacturing for the first time in seven months.
The signs of improving demand from China were met with indications of increased supply, as an industry report pointed to rising crude inventories in the United States, the world's largest consumer.
U.S. oil inventories increased by 6.2 million barrels in the week ending in February, according to market sources citing data from the American Petroleum Institute on Tuesday.
The government's official inventory estimates are set to be released at 1530 GMT today. In another sign of increased supply, production from the Organization of the Petroleum Exporting Countries (OPEC) rose by 150,000 barrels per day in February, according to a survey conducted by Reuters.
