* Chinese manufacturing PMI rises for 18th straight month
* Oil falls 9 pct in August as U.S. outlook deteriorates
* Coming Up: U.S. EIA oil inventory report; 1430 GMT
(Updates throughout, changes dateline, pvs SINGAPORE)
By Christopher Johnson
LONDON, Sept 1 (Reuters) - Oil rose to $72 per barrel on
Wednesday after news Chinese manufacturing growth accelerated
last month, easing concerns over the pace of economic recovery.
China's purchasing managers' index (PMI) rose to 51.7 in
August from 51.2 in July, official data showed on Wednesday,
marking the 18th straight month it has stood above the threshold
of 50 separating expansion from contraction in the world's
second-largest oil user. []
European PMIs were less positive, showing manufacturing in
the euro zone grew in August at its slowest pace since February.
Markets awaited U.S. PMIs later on Wednesday. []
Benchmark U.S. crude oil futures <CLc1> for October rose for
the first day this week, gaining 10 cents at $72.02 a barrel by
0830 GMT, after touching $71.53 on Tuesday, the lowest intraday
price since Aug. 25.
Equities markets rose on Wednesday while the dollar weakened
0.5 percent against a basket of currencies. [] <.DXY>
"The Chinese manufacturing figures are relatively reassuring
after some of the data we have had from the United States," said
Christophe Barret, global oil analyst at Credit Agricole.
"The data reinforce our view that we won't get a double dip
recession but the return to growth will be slow and painful."
ICE Brent futures <LCOc1> rose 16 cents to $74.80, extending
their premium over U.S. crude futures to more than $2.70 per
barrel, the highest margin for more than three months.
North Sea crude oil prices are being supported by tighter
supplies due to annual maintenance at oilfields and relatively
high demand in Europe at a time of high U.S. oil stocks.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
For a graphic showing the performance of 24 traded
commodities so far this year, click: http://r.reuters.com/hun72k
For a graphic showing Brent extending its premium over
benchmark U.S. crude futures to a three-month high, click:
http://link.reuters.com/vek68n
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
Prices tumbled 3.7 percent on Tuesday on signs that U.S.
stockpiles rose further last week and bad weather was set to
suppress gasoline demand at the end of the driving season.
Appetite for raw materials was also depressed as the minutes
of U.S. Federal Reserve's latest meeting showed policymakers saw
increasing risks to growth. []
Oil fell more than $7 and almost 9 percent in August, its
biggest monthly percentage loss since May, as the outlook for
the U.S. economy deteriorated. Prices hit a 2010 low of $64.24
on May 20, the weakest front-month price since July 2009, after
reaching the peak for this year at $87.15 on May 3.
CRUDE INVENTORIES JUMP
U.S. crude stockpiles jumped 4.8 million barrels last week,
the American Petroleum Institute (API) said on Tuesday, more
than four times the expected gain of 1.1 million barrels.
Drops in fuel stocks were smaller than the crude increase,
at 589,000 barrels for gasoline and 1.9 million barrels for
distillates including heating oil and diesel.
The Energy Information Administration (EIA) will publish
government statistics on inventories and demand on Wednesday at
1430 GMT. Expectations are for gasoline supplies to have
declined 200,000 barrels and distillates to have gained 1.2
million in the week to Aug. 27, a Reuters survey showed.
Hurricanes, now at the peak of the storm season, could
potentially have a bigger negative effect on U.S. gasoline
consumption than on crude production. They have so far posed
little threat to rigs and refineries in the Gulf of Mexico.
Hurricane Earl, a Category 4 with maximum sustained winds of
135 mph (215 km/hour), headed towards North America's east coast
and was expected to approach Pennsylvania and New Jersey, home
to all the U.S. East Coast's operating refinery capacity of
1.136 million barrels per day.
The U.S. National Hurricane Center said it was monitoring
two other systems in the Atlantic, but computer models showed no
immediate threat to Gulf of Mexico oil infrastructure.
[]
(Additional reporting by Alejandro Barbajosa in Singapore;
editing by William Hardy)
