UPDATE 10-Oil rises more than 1% on hopes for economic recovery

Reuters

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    * U.S. manufacturing activity near 1-1/2-year high
    * OPEC+ set to raise output in August, adding 1.5 mln bpd
    * Brent rangebound between $41 and $45/bbl over past month
    * Fears over rising COVID-19 cases weigh on market
    * Euro zone manufacturing activity expands modestly 

 (New throughout, updates prices, market activity and comments
to settlement)
    By Laila Kearney
    NEW YORK, Aug 3 (Reuters) - Oil prices were up more than 1%
on Monday on positive economic data from the United States,
Europe and Asia, but investors remained concerned about rising
COVID-19 cases globally and oversupply as OPEC begins to lift
supply cuts.
    Brent crude  LCOc1  settled at $44.15 a barrel, rising 63
cents, or 1.5%. U.S. West Texas Intermediate (WTI) crude  CLc1 
rose 74 cents, or 1.8%, to end at $41.01 a barrel.
    U.S. manufacturing activity accelerated to its highest level
in nearly 1-1/2 years in July as orders increased despite a
resurgence in new COVID-19 infections, the Institute for Supply
Management said.  urn:newsml:reuters.com:*:nL1N2F50TL
    A similar survey showed manufacturing activity across the
euro zone expanded last month for the first time since early
2019, while positive manufacturing data in Asia also boosted
oil.  urn:newsml:reuters.com:*:nL4N2F520F
    "The industrial sector is picking back up and that portends
well for demand going forward," said John Kilduff, partner at
Again Capital LLC in New York.
    Investors, however, continue to worry about the economic
recovery as coronavirus cases climb, with known infections
reaching almost 18 million globally. More countries are imposing
new restrictions or extending existing curbs in an effort to
control the pandemic.  urn:newsml:reuters.com:*:nL8N2C60GZ  urn:newsml:reuters.com:*:nL4N2AY3AS urn:newsml:reuters.com:*:nL5N2F230P
    The prospect of oversupply also weighed on oil prices as the
Organization of the Petroleum Exporting Countries (OPEC) and its
allies, including Russia, prepare to ease oil supply cuts while
U.S. shale production begins to increase.
    "I think the question is going to remain, as OPEC reduces
their production cuts, are we going to continue to see oil
inventories around the world decline," said Andy Lipow or Lipow
Oil Associates.
    OPEC+ members have been cutting output by 9.7 million
barrels per day (bpd) since May. This month, cuts will taper to
7.7 million bpd until December.  urn:newsml:reuters.com:*:nL5N2F23YY     
    Russian oil and gas condensate output increased to 9.8
million bpd over Aug. 1-2, from 9.37 million bpd in July, a
source familiar with data said.  urn:newsml:reuters.com:*:nR4N2E202P


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OPEC Production Image    https://tmsnrt.rs/36aZvtY
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 (Additional reporting by Bozorgmehr Sharafedin in London and
Yuka Obayashi in Tokyo
Editing by Marguerita Choy and David Goodman)
 ((Laila.kearney@thomsonreuters.com; (917) 809-0054))

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