(MENAFN- FxPro) Crude oil prices jumped in Asia on Thursday as investors see recent liquidity and policy easing moves by China as a spur to demand.
Crude oil for delivery in October on the New York Mercantile Exchange rose 1.40% to $39.14 a barrel.
Ahead, the market is looking to rig count data in the U.S> at the end of the week. According to industry research group Baker Hughes (NYSE:BHI), the number of rigs drilling for oil in the U.S. increased by two last week to 674, the fifth straight weekly gain. The rig count dropped for 29 straight weeks before rebounding modestly in recent weeks.
Overnight, West Texas Intermediate oil futures added to losses on Wednesday, after data showed that oil product supplies in the U.S. rose sharply last week, underlining concerns over weak demand.
The U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories fell by 5.5 million barrels in the week ended August 21.
Market analysts' expected a crude-stock rise of 1.1 million, while the American Petroleum Institute late Tuesday reported a decline of 7.3 million barrels.
Supplies at Cushing, Oklahoma, the key delivery point for Nymex crude, increased by 256,000 barrels last week, following a rise of 326,000 barrels in the preceding week.
Total U.S. crude oil inventories stood at 450.8 million barrels as of last week, remaining near levels not seen for this time of year in at least the last 80 years.
The report also showed that gasoline inventories increased by 1.7 million barrels, while distillate stockpiles rose by 1.4 million barrels.
Elsewhere, on the ICE Futures Exchange in London, Brent oil for October delivery dipped 29 cents, or 0.66%, to trade at $42.92 a barrel. London-traded Brent futures sank to $42.23 on Monday, the lowest level since March 2009.
Global oil production is outpacing demand following a boom in U.S. shale oil production and after a decision by the Organization of Petroleum Exporting Countries last year not to cut production.
But hopes for demand were spurred as China's central bank said on Wednesday it will inject 140 billion yuan, or $21.8 billion, into the financial system in an effort to boost liquidity.
China cut interest rates and lowered the reserve requirement ratio for large lenders on Tuesday, in a much-anticipated move that some in the market believed was long overdue.
Recent steep declines in Chinese equity markets have sparked fears that they will hasten an economic downturn and undermined investor confidence in the government's ability to revitalize economic growth.
The turmoil in markets began when China unexpectedly devalued the yuan on August 11, sparking fears over the condition of the economy.
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