Mubasher: Oil prices rose on Thursday as investors were counting on further economic stimulus by China following soft data, partially paring losses in the preceding session due to an unexpected rise in US crude stockpiles, according to Reuters.

By 7:43 am GMT, US Nymex crude futures rose by 0.54% to $55.36 per barrel (pb), while global benchmark Brent futures climbed by 0.64% to $61 pb.

Manufacturing purchasing managers’ index (PMI) data from China showed that factory business contracted for the sixth month running in October, while growth of the services sector lost pace, hitting the weakest level since February 2016.

“The move up in oil is driven by the expectation that more China stimulus is now on the way after the six-month low in the China manufacturing PMI,” OANDA senior market analyst Jeffrey Halley was quoted by Reuters.

Furthermore, the Federal Reserve on Wednesday cut interest rates for the third time this year, with the monetary policy stance vouching for the sustainability of economic growth, which meant higher crude demand.

On the supply front, US crude oil stockpiles saw a buildup of 5.7 million barrels in the week ended 25 October, the Energy Information Administration (EIA) said.

However, gasoline and distillate inventories extended their fall, even refineries boosted their production, the EIA said.