Oil Ends Up After China Demand News, Fragile Recovery Seen
U.S. West Texas Intermediate (WTI) crude finished up 10 cents, or 0.1 percent, at $82.81 a barrel in New York, after hitting a session peak at $84.05.
Implied oil demand in China, the world's largest energy consumer, jumped 6.2 percent in September from August to 10.3 million barrels per day, the highest since February, data showed.
China's economy also expanded above forecasts, growing 7.3 percent in the third quarter, although that was the slowest pace since the global financial crisis. Factory output rose 8 percent in September from a year earlier.
"The rise in implied Chinese oil demand may have more to do with filling stockpiles, said Tamas Varga, analyst at London-based brokerage PVM Oil Associates. "Chinese companies have been buying crude oil because it has been cheap."
Christopher Bellew, a senior oil broker with Jefferies in London, also cautioned about reading too much into the Chinese data.
"Looking forward, I think we'll see more pressure to the downside," Bellew said. "These lower prices will take a while to have any impact on supply."
The International Energy Agency, meanwhile, slashed its world oil demand growth forecast for next year. On Wall Street, investment bank Citigroup cut its forecast for Brent to $92 and U.S. crude to $83 for the fourth quarter.
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