China's Factory Activity Boosts Oil Prices Despite OPEC's Increased Output

Oil prices rose for a second consecutive day on Wednesday, supported by reports of expanding manufacturing activity in China, the world's largest crude importer. Brent crude oil for May increased by 0.3%, or 24 cents, to reach $83.69 a barrel at 0214 GMT.

The growth in oil prices is due to expectations of a strong rebound in fuel demand in China, the world's second-largest crude consumer. The outlook was further improved by data indicating that China's factory activity rose for the first time in seven months in February.

However, the rising crude stockpiles in the US, the world's biggest oil consumer and producer, are causing concern. US oil inventories increased by 6.2 million barrels in the week ending Feb. 24, according to market sources citing American Petroleum Institute (API) figures on Tuesday.

Although gasoline inventories declined by 1.8 million barrels and distillate fuels decreased by 340,000 barrels, the official US government data on stockpiles, due later on Wednesday, is forecast to show a tenth consecutive week of builds, with analysts in a Reuters poll expecting a rise of nearly half a million barrels last week. The Organization of the Petroleum Exporting Countries (OPEC) has also reported rising supply levels, with output up by 150,000 barrels per day from January, reaching 28.97 million barrels per day in February, but still down over 700,000 barrels per day from September.

A Packed Economic Calendar Ahead on March 1st

Get ready traders, because March 1st is looking like a day packed with potential market-moving events! The economic calendar is chock-full of crucial data releases that could significantly impact various markets, so it's time to pay close attention.

First up, we have the German Manufacturing PMI and Unemployment Change numbers, which could reveal the current state of Europe's biggest economy. With a forecast of 46.5 for the PMI, the same as the previous reading, we'll be watching closely to see if the figures can beat expectations and provide an upside surprise for the Euro.

Then, we have the Manufacturing PMI from the UK with a forecast of 49.2. With Brexit uncertainties still lingering in the background, this figure could give us insight into the UK's manufacturing industry's health and potentially impact the pound.

Next, we have the European Central Bank President Christine Lagarde's speech, which could provide insight into the ECB's monetary policy plans, giving us an idea of what to expect from the Euro in the coming months.

Then, the German CPI (YoY) data is due, with a forecast of 8.5%, down from the previous month's reading of 8.7%. A better-than-expected number could give the Euro a boost, while a worse-than-expected number could lead to a drop in the currency's value.

Last but not least, we have the ISM Manufacturing PMI from the US, with a forecast of 48.0, which is a bit better than the previous month. This data is significant as it provides an insight into the health of the US manufacturing sector and could impact the USD. Additionally, the Crude Oil Inventories data release could affect oil prices, leading to potential trading opportunities.