Brent back above $113, cuts losses after China data

The $113per barrel is a one-week low.

Brent crude futures rose off session lows on Tuesday after upbeat Chinese data strengthened the outlook for demand from the world’s number two oil consumer.

The oil benchmark dropped to a one-week low below $113 a barrel earlier on Tuesday after Russia offered to help put Syria’s chemical weapons under international control.

The gesture has calmed worries of a potential U.S.-led strike against the country.

China’s industrial output rose a forecast-beating 10.4 per cent in August from a year ago, while retail sales increased 13.4 per cent, government data showed.

Those numbers added to evidence that the Chinese economy may avoid a sharp slowdown after data over the past two days showed exports rose more than predicted in August and inflation remained tame.

“It’s a plus for demand outlook for industrial commodities generally and builds on the positive picture we’ve been seeing out of China for the past couple of months,” said Ric Spooner, chief market analyst at CMC Markets.

Brent oil for October delivery was down 42 cents at 113.30 per barrel by 0659 GMT, after touching a session low of 112.61 dollars, it’s weakest since Sept. 2.

The crude benchmark fell 2.1 per cent on Monday, its steepest single-day decline since June 20.

U.S. crude, also for delivery next month, dropped as low as $108.20 a barrel before paring its losses to $108.66, down 86 cents.

(Reuters/NAN)

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