Global oil prices recovered in Asian trade Wednesday and rose above $80 a barrel mainly after reports of decline in US stockpiles.
Light sweet crude for November delivery was seen trading at $80.30 a barrel at 12.00 noon Singapore time while Brent crude was seen trading at $81.49 a barrel in London.
The more liquid December contract, which will become the front month from Thursday, gained 39 cents to $80.55.
American Petroleum Institute said yesterday U.S. crude inventories increased by 2.3 million barrels last week. Gasoline inventories dropped 83,000 barrels last week, the API said. Distillate fuel stockpiles including heating oil and diesel fell 854,000 barrels.
On Tuesday, world s second largest oil consumer China surprised markets by raising interest rates for the first time in nearly three years.
China, the world's second-largest oil user, has been the main driver of growth in the crude market so far this year, as imports soar, while an inventory overhang in top consumer the United States has dragged the market lower.
New York's main contract, light sweet crude for November delivery plunged $3.59 to settle at $79.49 a barrel while Brent crude for December delivery closed at $81.10 a barrel
Futures gained as much as 1 percent after declining 4.3 percent yesterday, the biggest drop since Feb. 4. An unexpected rate hike yesterday by the Chinese central bank may lure more capital to the country as investors seek better returns.
Light sweet crude for November delivery was seen trading at $80.30 a barrel at 12.00 noon Singapore time while Brent crude was seen trading at $81.49 a barrel in London.
The more liquid December contract, which will become the front month from Thursday, gained 39 cents to $80.55.
American Petroleum Institute said yesterday U.S. crude inventories increased by 2.3 million barrels last week. Gasoline inventories dropped 83,000 barrels last week, the API said. Distillate fuel stockpiles including heating oil and diesel fell 854,000 barrels.
On Tuesday, world s second largest oil consumer China surprised markets by raising interest rates for the first time in nearly three years.
China, the world's second-largest oil user, has been the main driver of growth in the crude market so far this year, as imports soar, while an inventory overhang in top consumer the United States has dragged the market lower.
New York's main contract, light sweet crude for November delivery plunged $3.59 to settle at $79.49 a barrel while Brent crude for December delivery closed at $81.10 a barrel
Futures gained as much as 1 percent after declining 4.3 percent yesterday, the biggest drop since Feb. 4. An unexpected rate hike yesterday by the Chinese central bank may lure more capital to the country as investors seek better returns.
