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Brent crude oil stabilised below $85 a barrel on Thursday as strong European and Chinese data offset a slide triggered by a higher-than-expected build in US crude stocks.
European industry grew much faster than analysts predicted in October, a purchasing managers’ index of 52.2 showed on Thursday.
Growth in Chinese industry quickened to a three-month high in October, with the HSBC/Markit manufacturing PMI rising to 50.4 from 50.2 in September.
But overall growth in the world’s largest oil importer is at its slowest since the global financial crisis in 2009, and risks missing its official target for the first time in 15 years.
“Prices are back under pressure, and the stabilisation could be short-lived,’’ said Carsten Fritsch, oil analyst at Commerzbank in Frankfurt.
Brent crude for December was up 15 cents at $84.86 a barrel by 0840 GMT. US front-month crude was up 5 cents at $80.57 a barrel.
Both benchmarks fell sharply on Wednesday after US inventory data showed a large climb in crude stocks, with US crude ending the day down by more than $2.
US crude inventories surged by 7.1 million barrels last week to 377.68 million barrels, more than double the 2.7-million-barrel increase that analysts had forecast, data from the Energy Information Administration showed on Wednesday.
OPEC output
The Organization of the Petroleum Exporting Countries has not given any clear signals that it will cut its output at a November 27 meeting, exacerbating fears of oversupply.
OPEC has previously cut output to support prices in times of oversupply, but disagreements between member states and the growth in non-OPEC supply — particularly in the United States — could lead the group to act differently this time.
“I don't think there will be a cut,’’ said Commerzbank’s Fritsch. “OPEC members fear that a cut alone will not push the price up - it will just make more room for non-OPEC supplies.’’
Libya’s OPEC governor Samir Kamal had said on Wednesday that OPEC had to reduce oil output by at least 500,000 barrels per day (bpd) to curb oversupply of about 1 million bpd.
But Libya is the only one of four African OPEC members calling for an OPEC cut.
Saudi Arabia, OPEC’s top producer, has sent signals that it is comfortable with markedly lower oil prices.
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