Oil Ends Up After China Demand News, Fragile Recovery Seen

Reuters

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.


123

View Full Article

Copyright 2017 Thomson Reuters. Click for Restrictions.

WHAT DO YOU THINK?

Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE



Most Popular Articles

From the Career Center
Jobs that may interest you
Field Project Assistant
Expertise: Project Management
Location: Midland, TX
 
Client Account Manager-Slickline (Houston)
Expertise: Sales|Slickline
Location: Houston, TX
 
United States Williston: Account Rep, Bus Dev
Expertise: Business Development|Marketing|Sales
Location: Williston, ND
 
search for more jobs

Brent Crude Oil : $52.42/BBL 2.12%
Light Crude Oil : $49.51/BBL 2.35%
Natural Gas : $3.17/MMBtu 2.25%
Updated in last 24 hours