Oil Ends Up After China Demand News, Fragile Recovery Seen
NEW YORK, Oct 21 (Reuters) - Brent crude oil ended up almost 1 percent on Tuesday, helped by data showing stronger-than-expected China demand and some technical price recovery after weeks of almost uninterrupted selling.
Analysts and traders cautioned, however, that global economic data, especially out of Europe, were still weak amid strong fears of oversupply in crude markets.
"Because of their deep slide over the past couple of weeks, oil prices are kind of overdone on the downside and vulnerable to turnarounds now," said Gene McGillian of Tradition Energy, an oil services advisory firm in Stamford, Connecticut.
"But whether we have hit bottom or not remains a question. I would think not given the market's recent performance, the continued swoon of the European economies and the idea that we have more than ample supplies of oil sloshing around the world finding for a home."
U.S. commercial crude oil stockpiles were forecast to have risen in the week ended Oct. 17, while inventories of refined products likely fell, an expanded Reuters survey showed.
The American Petroleum Institute (API) will issue a weekly inventory report later on Tuesday, while the U.S. Energy Information Administration (EIA) will release official weekly stockpiles data on Wednesday.
Brent settled up 82 cents at $86.22 a barrel. It rose as much as $1.06, or 1.2 percent, during the session to $86.48.
View Full Article