SINGAPORE: After renewed concerns over global demand and high stock levels, oil prices in international markets fell on Wednesday.
The recent rebound was driven by hopes that prices may have hit a bottom after a seven-month rout slashed oil futures by nearly 60 percent and prompted major energy firms to cut spending on new production. But weak data from key consumer China has rekindled demand concerns, dragging on oil prices.
Brent crude was 50 cents lower at $57.41 a barrel by 0336 GMT (10.36 p.m. EST), after gaining almost 6 percent on Tuesday and off a near six-year low of $45.19 reached in mid-January.
US crude was down 95 cents at $52.10 a barrel. The contract settled up 7 percent in the previous session, after trading at as high as $54.24 earlier in the day – more than $10 above than a near six-year low of $43.58 reached last week.
Estimates by industry group American Petroleum Institute that US crude stockpiles rose more than 6 million barrels last week also helped drive prices lower on Wednesday.
Oil major BP and top Chinese offshore energy producer CNOOC Ltd said on Tuesday they would deepen capital investment cuts this year to adapt to lower oil prices.
The outlook for oil demand has also been muddied by recent data showing China’s services sector grew at the slowest pace in six months in January.
