UPDATE 9-Oil rises 2% on U.S. crude stockpile draw, global manufacturing activity

* U.S. crude stockpiles slump as imports fall, refining
rises -EIA
* China's June factory activity rises to 6-month high
* Worldwide coronavirus cases cross 10.51 million

(Updates prices)
By Stephanie Kelly
NEW YORK, July 1 (Reuters) - Oil prices rose nearly 2% on
Wednesday following a drawdown in U.S. crude inventories from
record highs and a string of positive manufacturing data, but a
surge in coronavirus cases tempered gains.
Brent crude LCOc1 rose 80 cents, or 1.9%, to $42.07 a
barrel by 12:43 p.m. EDT (1643 GMT). U.S. crude CLc1 rose 59
cents, or 1.5%, to $39.86 a barrel.
U.S. crude inventories USOILC=ECI fell more than expected,
dropping by 7.2 million barrels last week, after hitting
all-time highs for three consecutive weeks, Energy Information
Administration data showed. Analysts had expected a
710,000-barrel drop. Much of the drawdown was attributed to refiners ramping up
production after reducing runs this spring because of the
pandemic, as refinery utilization rates USOIRU=ECI rose by 0.9
percentage point to 75.5%, their highest since early April.
"Largely we are moving forward in the way of demand and not
backward, despite the negative view of coronavirus cases
rising," said Tony Headrick, energy markets analyst at CHS
Hedging.
Improving global economic activity supported prices as well.
In China, factory activity grew at a faster clip in June, a
private business survey showed. Germany's manufacturing sector contracted at a slower pace
in June, while French factory activity rebounded into growth.
In a sign that fuel demand is recovering, tens of millions
of barrels of crude and oil products stored on tankers at sea
due to the coronavirus crisis are being sold, shipping sources
said. However, investors are cautious after a surge in infections
in the United States and a warning from the U.S. government's
top infectious disease expert that the number could soon double.
Following an agreement to curb supplies, the Organization of
the Petroleum Exporting Countries produced an average of 22.62
million barrels per day (bpd) in June, a Reuters survey found,
down 1.92 million bpd from May's revised figure.

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CHART: U.S. oil may test resistance at $40.31 Brent oil may rise into $42.37-$42.92 range
Brent and WTI price forecast since June 2019 https://tmsnrt.rs/2ZoYEU6
World's top producers slash output https://tmsnrt.rs/3g56mcX
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