by Katya Golubkova
TOKYO (Reuters) – Global oil prices edged lower in early trade on Thursday on tighter US supplies, with the focus on China’s factory activity late in the day amid weak economic expansion data in the world’s second-largest economy recently. I grew
Brent crude futures contract for October, which expires on Thursday, was up 14 cents, or 0.16%, at $86 a barrel and the more active November contract was up 10 cents, or 0.12%, at $85.34 by 0039 GMT.
US West Texas Intermediate crude futures rose 10 cents, or 0.13%, to $81.74.
Prices rising this week after US government data showed lower-than-expected crude supplies and a military coup in OPEC member Gabon raised fears of crude supply disruptions, providing additional support on Wednesday .
Analysts also expect Saudi Arabia to impose a voluntary oil cut of 1 million barrels per day for the third month in a row in October, joining cuts by OPEC+, the Organization of the Petroleum Exporting Countries, and allies led by Russia.
The US government also revised down last quarter GDP growth to 2.1% from 2.4% reported last month, and data released on Wednesday showed private payroll growth slowed significantly in August. .
The former Boston Fed chairman said on Wednesday that the Federal Reserve may end its interest rate hike cycle if the labor market and economic growth remain slow at the current sequential pace.
“The bad news was good, as weak US economic data dampened hopes of another rate hike,” ANZ Research said in a note. Higher interest rates reduce demand and put pressure on oil prices.
China’s factory activity is likely to decline for a fifth straight month in August, a Reuters poll showed, as weak demand threatens recovery prospects in the world’s second-biggest economy and pressure mounts on officials to boost growth. .
The official Purchasing Managers’ Index (PMI) is expected to rise to 49.4 in August, a slight improvement over the 49.3 recorded in July, but it will still be the fifth consecutive month below the key 50.0 level that separates expansion. shrinkage.
(Reporting by Katya Golubkova; Editing by Stephen Coates)
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