Oil prices recover for some reason, but financial concerns weigh
Oil prices recovered somewhat on Wednesday after touching the lows of almost a month during the previous session with concerns that a weakening global economy could dampen demand.
Burnt crude was up 12 cents, or 0.21%, to $ 58.38. a barrel by 0425 GMT, while US West Texas intermediate futures won 20 cents, or 0.37%, at $ 54.14 a barrel.
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Oil prices dropped to almost a month low on Tuesday after data showing that US manufacturing activity in August contracted for the first time in three years and euro area production activity contracted for a seventh month in August.
But global markets sprang up on Wednesday after a private investigation revealed that activity in China's service sector expanded at the fastest pace of three months in August as new orders increased, leading to the largest increase in hiring in over a year.
China is the world's second largest oil consumer and largest importer.
"Give jw.org en The tumble we saw overnight, there are probably people locking up the gains on shorts or perhaps establishing new longings pending that we might get a notice from Beijing on setting a trade talks date with the US), says Michael McCarthy, chief market strategist at CMC Markets in Sydney.
A short position is when an investor sells futures in expectation of falling prices, while a long position is when buying futures to earn rising prices. [1[ads1]9659002] US President Donald Trump warned Tuesday that he would be "tougher" against Beijing in the second period if trade talks are dragged on, causing fears for the market that ongoing US-China trade disputes could trigger a US recession.
is continuing more concerned about the recession, "said Stephen Innes, AxiTrader's marketing strategist.
"Furthermore, given that tariff rates pose a significant threat to US growth and, in turn, health in the global economy, oil prices will remain under pressure, especially if trade and tariff war shows no signs of slowing down."
Data due to this week's stock levels in the US will be delayed by one day to Wednesday and Thursday due to the US Labor Day holiday on Monday.
US crude stocks likely dropped for a third week, a preliminary poll from Reuters showed on Tuesday.
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On the supply side, Venezuela's oil exports in August dropped to their lowest level in 2019, internal reports and Refinitive Eikon data showed, following tougher US sanctions.
(Reporting by Jessica Jaganathan and Florence Tan; Editing by Christian Schmollinger)
