2020.09.0210:30:00UTC+00Oil Holds Steady On Economic Recovery Optimism

Oil prices held steady on Wednesday as signs of recovery in global manufacturing activity helped spur hopes that a pronounced recovery in crude consumption may be on the cards. Prices were also supported by a bigger-than-expected draw in U.S. crude stockpiles.

Benchmark Brent crude edged up 0.1 percent to $45.61 a barrel, extending gains for a third straight session. U.S. West Texas Intermediate futures were up 0.2 percent at $42.85 a barrel.

Solid manufacturing PMIs this week from China, the euro zone and the United States have fueled optimism of a recovery from the coronavirus pandemic.

All eyes are now on the U.S. ADP jobs report due later in the day, with economists expecting the U.S. private sector to add 950K jobs in August vs. +167K last.

In addition, Cleveland Federal Reserve President Loretta Mester and NY Fed President John Williams are scheduled to speak later in the day.

Meanwhile, the latest data released by the American Petroleum Institute (API) late Tuesday showed that U.S. crude inventories fell by 6.4 million barrels in the week to Aug. 28, against analysts' expectations for a draw of 1.9 million barrels.

Gasoline stocks also fell by 5.8 million barrels, exceeding expectations for a draw of 3.0 million barrels.

The U.S. Energy Information Administration (EIA) will come out with its oil inventory data later in the day.