North Sea crude prices move higher
North Sea oil prices gained in Asian trade on Tuesday, attempting to shake off the overnight selloff was driven by a strong fall in Chinese stock markets that made people question the global economic recovery. Latest oil prices were boosted by a rebound in those Chinese shares.
Benchmark Brent crude for October delivery rose 4 cents to $69.69 a barrel around midday in Singapore on ICE Futures exchange trading.
Meanwhile, WTI for October improved 7 cents to $70.03 a barrel, after dipping 3.8% on Monday, in Singapore on NYMEX electronic trade.
Traders said Chinese shares recovered on Tuesday from their Monday selloff after the release of manufacturing sector data that pointed to China’s economic revival being on track after all.
Traders added that the announcment of a key indicator of US manufacturing activity in August and weekly crude inventory statistics later in the day, are both seen indicating that the gradual rebound in the US economy and oil consumption, remains in place.
"The US ISM data is quite important and will set the tone. If the data comes out worse than expected, we could see the market fall further toward $65," Ben Westmore, commodities analyst with the National Australia Bank told British news agency Reuters.
On the other hand, if the market comes in better, then that should have a positive impact on prices.
Adding to the picture, weekly oil inventory data from the American Petroleum Institute will also contribute to the trading picture.