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Oil prices rebound before US data
[LONDON] Oil prices rebounded on Wednesday following sharp falls the day before, as traders looked ahead to US crude stockpiles data for energy demand indications in the world's biggest economy.
The market's recovery however was capped by the latest data out of China, traders said.
Brent North Sea crude for delivery in November climbed 35 US cents to stand at US$95.02 a barrel around midday in London.
US benchmark West Texas Intermediate (WTI) for November gained 52 US cents to US$91.68 a barrel.
WTI plummeted US$3.41 a barrel and Brent tumbled US$2.53 on Tuesday owing to a supply glut and a pick-up in the dollar, which is sitting at six-year highs against the yen and a two-year peaks versus the euro, traders said.
"The slide in prices was triggered by a combination of weaker US economic data that gave rise to concerns about demand, plus growing OPEC supply," Commerzbank analysts said in a note to clients.
Official data released on Wednesday showed Chinese manufacturing activity stalled in September as leaders struggle to address a slowdown in the world's second-largest economy.
The official purchasing managers index (PMI) came in at 51.5 in September, unchanged from the previous month, the National Bureau of Statistics said in a statement.
Later on Wednesday, the US Department of Energy will publish data showing the levels of commercial crude and gasoline stockpiles in the country. - AFP