Singapore, June 14 - Oil rebounded on Tuesday after China said industrial production grew at a faster-than-expected pace in May, easing concerns over a global economic slowdown and soothing worries that Europe's debt crisis would dent energy demand.
Brent crude for July
China's industrial output jumped 13.3 percent from a year earlier, topping forecasts for a 13.2 percent gain, government data showed on Tuesday. Consumer price inflation accelerated to a 34-month high, signaling Beijing may continue to tighten monetary policy.
"China is still ticking along nicely," said Ben Le Brun, an analyst at CMC Markets in Sydney.
"The government needs to tread a very fine line because the economy is still very hot. They may have to tighten again and that will have some effect on growth and a disruptive influence on oil demand, but I can't see anything derailing it."
Brent had fallen as much as 0.5 percent before the release of the Chinese data on prospects of lower European oil demand after rating agency Standard & Poor downgraded Greece to the lowest-rated country in the world. (Editing by Clarence Fernandez)