The price of Brent crude has broken back above the $50 barrier as a report on inventories in the US outweighed a gloomy outlook on manufacturing in China.
Benchmark Brent rose more than 2% after the Energy Information Administration said US crude inventories fell 1.9 million barrels to 453.97 million last week, exceeding analysts expectations.
Although total US oil inventories are still near record highs, the draw suggests a rebalancing of the world’s biggest domestic oil market is under way as oil production slows in the face of low prices.
Benchmark Brent for November was up $1.00 a barrel at $50.08 by mid afternoon, while US light crude for Novembertraded up 65 cents at $47.00.
Recommended for you
