Investing.com – Crude oil futures pulled back from a two-day low in choppy trade on Tuesday, erasing losses suffered in the wake of data showing China’s economy grew at the slowest pace in two years in the third quarter.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in December traded at USD87.05 a barrel during U.S. morning trade, gaining 0.5%.
It earlier fell by as much as 0.95% to trade at USD85.77 a barrel, the lowest price since October 14.
Crude prices came under pressure during the Asian trading session after official data showed that China's economy grew by 9.1% in the third quarter, slightly below forecasts for growth of 9.2%, indicating the world's second-largest economy expanded at its slowest pace since the second quarter of 2009.
China’s implied oil demand rose 1% in September from a year earlier to approximately 8.9 million barrels per day, its slowest rate of growth so far this year.
China is the world’s second largest crude oil consumer, with the International Energy Agency forecasting that China will account for approximately 40% of global oil demand growth in 2012.
Crude oil futures recovered after the U.S. Labor Department said producer prices rose more-than-expected in September, climbing 0.8% after a flat reading the previous month and above expectations for a 0.2% gain.
It was the largest increase in five months as gasoline prices rose.
Meanwhile, markets were awaiting fresh weekly information on U.S. stockpiles of crude and refined products to gauge the strength of oil demand in the world’s largest oil consumer.
The American Petroleum Institute will release its inventories report later in the day, while Wednesday’s government report could show crude stockpiles rose by 1.8 million barrels last week, while gasoline supplies are forecast to fall by 1.0 million barrels.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for December delivery slipped 0.6% to trade at USD109.50 a barrel, with the spread between the Brent and crude contracts narrowing to USD22.45 a barrel.
Brent prices came under pressure after the chief executive of Libya’s state-owned Libyan Emirates Refining said that the country’s largest oil refinery at Ras Lanuf will be ready to start operations next month.
The plant, which can process 220,000 barrels a day of crude, was shut in March due to the country’s civil war.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in December traded at USD87.05 a barrel during U.S. morning trade, gaining 0.5%.
It earlier fell by as much as 0.95% to trade at USD85.77 a barrel, the lowest price since October 14.
Crude prices came under pressure during the Asian trading session after official data showed that China's economy grew by 9.1% in the third quarter, slightly below forecasts for growth of 9.2%, indicating the world's second-largest economy expanded at its slowest pace since the second quarter of 2009.
China’s implied oil demand rose 1% in September from a year earlier to approximately 8.9 million barrels per day, its slowest rate of growth so far this year.
China is the world’s second largest crude oil consumer, with the International Energy Agency forecasting that China will account for approximately 40% of global oil demand growth in 2012.
Crude oil futures recovered after the U.S. Labor Department said producer prices rose more-than-expected in September, climbing 0.8% after a flat reading the previous month and above expectations for a 0.2% gain.
It was the largest increase in five months as gasoline prices rose.
Meanwhile, markets were awaiting fresh weekly information on U.S. stockpiles of crude and refined products to gauge the strength of oil demand in the world’s largest oil consumer.
The American Petroleum Institute will release its inventories report later in the day, while Wednesday’s government report could show crude stockpiles rose by 1.8 million barrels last week, while gasoline supplies are forecast to fall by 1.0 million barrels.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for December delivery slipped 0.6% to trade at USD109.50 a barrel, with the spread between the Brent and crude contracts narrowing to USD22.45 a barrel.
Brent prices came under pressure after the chief executive of Libya’s state-owned Libyan Emirates Refining said that the country’s largest oil refinery at Ras Lanuf will be ready to start operations next month.
The plant, which can process 220,000 barrels a day of crude, was shut in March due to the country’s civil war.