"The mere threat of a production cut should put a floor under oil prices until the next OPEC meeting on Nov. 30".
- Jason Gammel, Jefferies
US private companies increased their job creation less than expected last month, official data revealed on Wednesday. According to the ADP National Employment Report, non-farm private employment rose 154,000 on a seasonally adjusted basis in September, compared to the preceding month's downwardly revised figure of 175,000, while market analysts expected a slighter drop to 166,000 during the reported period. The ADP report comes out every month two days ahead of the NFP report, which is expected to announce 171,000 new jobs for September, following the previous month's 151,000. Meanwhile, ISM's Manufacturing PMI came in at 57.1, in September, after touching its lowest level of 51.4 points in August, while markets expect the Index to rise to 53.1. Furthermore, factory orders for US goods jumped 0.2%, surpassing the 0.4% fall forecast. The services sector accounts for approximately 80% of the US economy. In the meantime, the EIA data released on Wednesday showed US crude oil inventories dropped 3.0 million barrels last week, declining for the fifth consecutive week. Analysts anticipated a buildup of 1.1 million barrels in the week ending September 30, after the previous week's 1.9 million-barrel fall.
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