Oil prices surged as much as 4 percent on Tuesday in a technical correction and on short covering after a two-month lows hit in the previous session, traders said.
U.S. crude oil futures settled up $2.04, or 4.56 percent, for the largest gain in a day since April 8. Brent crude futures were $2.12, or 4.58 percent, at $48.37 per barrel.
Anticipation that data later on Tuesday would show an eighth straight week of declines in U.S. crude stockpiles also boosted the market.
Some investors and analysts said gasoline and diesel were in oversupply despite summer driving demand in the United States and that could pressure the broader petroleum complex again.
Saudi Arabia's energy minister also there were hundreds of millions of barrels of surplus crude oil in the global market, although a price above $50 a barrel was required to ensure continued investment in the space.
Oil producing group OPEC said it was optimistic of seeing balance in supply-demand next year even as it lowered its expectations for 2016 global growth due to the uncertainties caused by Britain's exit from the European Union.
A rally in global equity markets weighed on safe havens, including the dollar, pushing it down 0.2 percent. A weaker dollar makes greenback-denominated oilmore attractive to holders of the euro and other currencies.
It is forecasted that U.S. crude stockpiles fell 3.3 million barrels last week, declining for an eighth week in a row. The American Petroleum Institute (API), a trade group, will issue its own stockpiles report at 4:30 p.m. EDT (2030 GMT) before official inventory data on Wednesday from the U.S. government's Energy Information Administration (EIA).
A rising U.S. oil drilling rig count and cuts in bullish hedge fund bets on crude to four-month lows have also pressured prices.
Moreover,a poll showed that China's economic growth likely cooled to a seven-year low in the second quarter as the industrial sector lost steam and a boost from financial services faded.
China's top oil firm, CNPC, said it saw the country's oil consumption rising to 670 million tonnes by 2027 from 520 million in 2014, implying annual growth of just 2 percent. (CNBC)
Skangas duel fuel LNG carrier Coral Energy (image credit/Skangas)
Liquified natural gas (LNG) bunker tanker Coralius has made its first trip loading and delivering LNG to and from Norwegian ports, according to trade press reports.
The 5,800 cubic meter capacity tanker, which is owned by Norwegian gas company Skangas, was delivered to the company in June. Skangas also operates LNG carrier Coral Energy.
OPEC Cutback Extension to be Discussed in November, But Developments Could Render Any Deal Meaningless
Analysts say everything from Saudi exploration to rising tensions with North Korea could radically alter the dynamics of the international market. File Image / Pixabay
Ever since the Organization of the Petroleum Exporting Countries (OPEC) extended the duration of its production cuts earlier this year to March of 2018, speculation has been rampant that the meager cutback volume coupled with the large number of members