Oil remained steady at approximately $74 on Thursday as investors awaited upcoming US reports on employment.
This followed daily gains of almost three percent after positive manufacturing data raised optimism across markets.
US crude dipped eight cents to $73.83 a barrel for October delivery following a jump of $1.99 on Wednesday.
Hopes were raised following reports on Wednesday that record petroleum stockpiles would fall due to accelerated manufacturing in top oil consumers in the USA.
“The market was just seeking optimism”, said Serene Lim, a Singapore-based oil analyst at ANZ, “and this came from strong manufacturing data” .
“Some traders started the new month with new positions. It was a buying opportunity, especially for those who were bullish in the long term”, she added.
“However, the market will be in a wait-and-see mode especially before the payrolls report this Friday”.
August saw around 10,000 jobs unexpectedly cut in the USA by private employers, according to a report by payrolls processor ADP.
According to the Energy Information Administration, stockpiles of US crude increased three-fold in the week to 27 August as refineries decreased usage rates and added 3.4 million barrels.
Distillate supplies fell 739,000 barrels and gasoline inventories declined 212,000 barrels, according to data from the EIA.
US petroleum stockpiles rose last week to a new high of 1.143 billion barrels, up from 1.139 billion the previous week.
This was the highest inventory level since at least 1990, the year the EIA started keeping records of weekly stocks data.
“The fundamentals will still weigh down the market,” Lim said. “Cushing inventories are still relatively high”.
