London, Oct 21 (AFP) Oil prices rose today as caution returned after a weak rally spurred by upbeat industrial production data from China, the world’s top energy consuming nation, analysts said.
US benchmark West Texas Intermediate for November delivery advanced 45 cents to USD 83.16 a barrel compared with yesterday’s close.
Brent North Sea crude for December won 51 cents to stand at USD 85.91 a barrel in London midday deals.
Daniel Ang, investment analyst with Phillip Futures in Singapore, said investors were cheered after China said industrial production rose 8.0 per cent year-on-year in September. That was a rebound from a more than five year low of 6.9 per cent in August.
He added that the figure overshadowed data showing China’s economy grew in the third quarter at its slowest pace since the depths of the global financial crisis.
“Industrial production is a good indication of crude oil demand from China,” he told AFP, although he added that it remained to be seen whether this would be sustained in the coming months.
Despite the latest gains, analysts have warned oil prices still face downward pressure owing to an oversupply of crude and reduced demand because of the slowing global economy.
Brent is struggling at around four-year lows and WTI is at around levels seen in 2012. (AFP)