LONDON: Oil rose from a more than two-year low to over US$95 a barrel yesterday as a slightly better-than-expected Chinese factory survey countered worries of an economic slowdown in the world’s No. 2 oil consumer and ample supplies.
Concern over increasing Opec oil supply, weak European and Chinese growth and a stronger dollar pushed global benchmark brent to its lowest since June 2012 on Tuesday, and the same factors are likely to keep a lid on any price recovery.
Brent crude was up 48 cents at US$95.15 a barrel by 1313GMT. On Tuesday, it touched a session low of US$94.24, its weakest since June 2012. US crude gained 72 cents to US$91.88.
US crude gained some support from industry group the American Petroleum Institute’s weekly supply report, which said crude inventories fell by 463,000 barrels, rather than increasing by 700,000 barrels as analysts had expected.
Investors will be looking to official inventory data from the US government to confirm the surprise drawdown. Reuters