Oil futures march 1% higher after US inventory drawdown

Oil futures advanced in American trade as the dollar index lost ground, following earlier data from the US, the world's largest energy consumer, including the EIA report that showed yet another inventory drawdown last week in line with expectations. 

As of 05:44 GMT, US crude futures due on September 15 rose 1.11% to $48.36 a barrel from the opening of $47.83, while Brent crude futures due on October 16 rallied 1.10% to $52.44 a barrel from the opening of $51.87, as the dollar index shed 0.21% to 93.35 from the opening of 93.55. 

Earlier US data showed the manufacturing PMI slowed down unexpectedly, while services PMI widened more than expected according to preliminary readings for August, as new home sales tumbled unexpectedly in July. 

On another note, the Energy Information Administration released its report on US crude stocks, showing a drawdown of 3.3 million barrels in the week ending August 18, adding to the 8.9M drop in the previous reading, and matching expectations, with total stocks now reaching 463.2 million barrels, remaining within the uppermost range on average in this time of year. 

Otherwise, gasoline inventories fell 1.2 million barrels, while distillate stocks, including heating fuel, stayed the same, both remaining within the uppermost range on average in this time of year.