Oil benchmarks on both sides of Atlantic kept its bullish momentum intact this Tuesday, adding to the heavy gains booked the day earlier. Currently both crude benchmarks are heading higher, with WTI up +1% to 34.08 while the Brent oil rallies +0.79% to 36.86. Both crude benchmarks took a breather in the upsurge and now consolidate the upside, with the focus turning towards the weekly stockpiles report from API due to be published later today. While the official EIA report is due on Wednesday. Crude stockpiles in the US climbed by 3.5 million barrels to exceed the 507 million barrel level for the first time on record. However, the upside appears to lack momentum as the recent poor Chinese manufacturing PMI reports reinforced slowdown concerns in the world's largest oil consumer, China. The Chinese Caixin Manufacturing PMI for February came in at 48.00 vs 48.4 expected and 48.4 last. While the official China manufacturing PMI fell from 49.4 in January to 49.0 in Jan, the weakest reading in more than four years. On Monday, oil prices rebounded on the back of Saudi's pledge to maintain stability in oil markets, while China's central bank unexpected RRR cut policy announcement also boosted the black gold. Looking ahead, the inventory reports remain in focus apart from the US manufacturing sector activity reports.
