Investing.com - Crude oil futures edged up from the lowest level since July during European morning hours on Wednesday, however gains were capped after a string of weak manufacturing data out of the euro zone reinforced concerns over the outlook for global growth.
Oil traders were focusing on closely-watched weekly supply data on U.S. stockpiles of crude and refined products from the U.S. Energy Information Administration later in the day.
On the New York Mercantile Exchange, light sweet crude futures for delivery in December traded at USD86.89 a barrel during European morning trade, easing up 0.25%.
New York-traded oil prices traded in a range of USD87.47 a barrel, the daily high and a session low of USD86.27 a barrel. New York-traded oil prices fell to USD85.80 on Tuesday, the weakest level since July 13.
Oil prices have been under heavy selling pressure in recent sessions, as increasing concerns over the outlook for global economic growth and the impact on future oil demand prospects dampened the appeal of the commodity.
Markit said that its flash euro zone manufacturing purchasing managers’ index fell 45.3 in October from a final reading of 46.1 in September. Analysts had expected the index to ease up to 46.6 in October.
Germany’s flash manufacturing PMI fell to 45.7 in October, from a final reading of 47.4 in September, disappointing expectations for an improvement to 48.0.
Meanwhile, a report by German research institute Ifo showed that its business climate index fell to100.0 in October, the lowest level since March 2010, from a reading of 101.4 in September.
Oil futures remained supported after a report showed that China's HSBC manufacturing PMI came in at 49.1 in October, compared with a final reading of 47.9 in September.
China is the world's second largest oil consumer after the U.S. and has been the engine of strengthening demand.
Oil traders looked ahead to weekly data from the U.S. government on oil supplies later in the day to gauge the strength of demand from the world’s largest oil consumer.
The report was expected to show that U.S. crude oil stockpiles increased by 1.9 million barrels last week, while gasoline inventories were forecast to rise by 0.7 million barrels.
After markets closed Tuesday, the American Petroleum Institute, an industry group, said that U.S. crude inventories rose by a modest 0.31 million barrels last week, while gasoline stocks increased 0.18 million barrels.
The U.S. is the world’s biggest oil consuming country, responsible for almost 22% of global oil demand.
Market participants also awaited the conclusion of the Federal Reserve's two-day policy-setting meeting later in the day, after the central bank announced its third round of quantitative easing last month.
Elsewhere, oil traders continued to focus on tensions between Syria and Turkey and the possibility that Iran could support Syria in such a dispute.
Violence also spilled over to neighboring Lebanon in recent days, fuelling concerns over a region-wide conflict.
Countries in the Middle East and North Africa were responsible for 36% of global oil production and held 52% of proved reserves in 2011.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for December delivery added 0.6% to trade at USD108.92 a barrel, with the spread between the Brent and crude contracts standing at USD22.03 a barrel.
London-traded Brent prices have been well-supported in recent sessions, as a combination of lingering concerns over a disruption to supplies from the Middle East and worries over declining production in the North Sea-region have been boosting prices.
Oil traders were focusing on closely-watched weekly supply data on U.S. stockpiles of crude and refined products from the U.S. Energy Information Administration later in the day.
On the New York Mercantile Exchange, light sweet crude futures for delivery in December traded at USD86.89 a barrel during European morning trade, easing up 0.25%.
New York-traded oil prices traded in a range of USD87.47 a barrel, the daily high and a session low of USD86.27 a barrel. New York-traded oil prices fell to USD85.80 on Tuesday, the weakest level since July 13.
Oil prices have been under heavy selling pressure in recent sessions, as increasing concerns over the outlook for global economic growth and the impact on future oil demand prospects dampened the appeal of the commodity.
Markit said that its flash euro zone manufacturing purchasing managers’ index fell 45.3 in October from a final reading of 46.1 in September. Analysts had expected the index to ease up to 46.6 in October.
Germany’s flash manufacturing PMI fell to 45.7 in October, from a final reading of 47.4 in September, disappointing expectations for an improvement to 48.0.
Meanwhile, a report by German research institute Ifo showed that its business climate index fell to100.0 in October, the lowest level since March 2010, from a reading of 101.4 in September.
Oil futures remained supported after a report showed that China's HSBC manufacturing PMI came in at 49.1 in October, compared with a final reading of 47.9 in September.
China is the world's second largest oil consumer after the U.S. and has been the engine of strengthening demand.
Oil traders looked ahead to weekly data from the U.S. government on oil supplies later in the day to gauge the strength of demand from the world’s largest oil consumer.
The report was expected to show that U.S. crude oil stockpiles increased by 1.9 million barrels last week, while gasoline inventories were forecast to rise by 0.7 million barrels.
After markets closed Tuesday, the American Petroleum Institute, an industry group, said that U.S. crude inventories rose by a modest 0.31 million barrels last week, while gasoline stocks increased 0.18 million barrels.
The U.S. is the world’s biggest oil consuming country, responsible for almost 22% of global oil demand.
Market participants also awaited the conclusion of the Federal Reserve's two-day policy-setting meeting later in the day, after the central bank announced its third round of quantitative easing last month.
Elsewhere, oil traders continued to focus on tensions between Syria and Turkey and the possibility that Iran could support Syria in such a dispute.
Violence also spilled over to neighboring Lebanon in recent days, fuelling concerns over a region-wide conflict.
Countries in the Middle East and North Africa were responsible for 36% of global oil production and held 52% of proved reserves in 2011.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for December delivery added 0.6% to trade at USD108.92 a barrel, with the spread between the Brent and crude contracts standing at USD22.03 a barrel.
London-traded Brent prices have been well-supported in recent sessions, as a combination of lingering concerns over a disruption to supplies from the Middle East and worries over declining production in the North Sea-region have been boosting prices.