Oil prices rebounded today after
falling steeply in the previous session due to weak Chinese and US manufacturing and continued worries about the global supply glut, analysts said.
US benchmark West Texas Intermediate (WTI) for September delivery rose 88 cents to USD 46.05 a barrel compared with yesterday's close in trading at 1615 GMT on the New York Mercantile Exchange (Nymex).
Brent North Sea crude for September climbed 54 cents to USD 50.06 a barrel in trading on the Intercontinental Exchange (ICE) in London.
WTI had plummeted USD 1.95 while Brent tumbled USD 2.69 yesterday, dropping below USD 50 per barrel for the first time in six months, extending sharp losses of more than two per cent on Friday.
Analysts said the small rebound was likely to be capped as dealers focused on sluggish manufacturing data from energy guzzlers China and the United States.
"Weak Chinese data and a continued high rate of OPEC production ... Are weighing on prices, as is a nine-percent slump in US gasoline prices," said analysts at Commerzbank.
A key private economic indicator on the Chinese manufacturing sector, Caixin's purchasing managers index, showed a plunge in July to a two-year low of 47.8, deeper into contraction territory.
A reading of 50 marks the line between growth and contraction. The official PMI showed a drop to 50.0 in July from 50.2 in June.
In the United States, the Institute for Supply Management's purchasing managers index showed manufacturing activity cooled to 52.7 in July from 53.5 in June.
