The price of Brent crude futures steadied above $86 a barrel today on expectations that oil demand may lift in the near term.
Reuters reported that Brent crude for December delivery was up 17 cents at $86.39 and December US crude increased 13 cents to $82.62 a barrel.
Data from the American Petroleum Institute has revealed that US crude inventories increased 1.2 million barrels last week, less than the expected rise of 2.7 million barrels.
Oil demand in China grew 6.2% in September to 10.3 million barrels per day, the highest since February.
The country’s factory production also increased 8% in September and its economy grew by 7.3% in the third quarter of 2014.
StanChart analysts were quoted by the news agency as saying that while there was no excess supply in the fourth quarter, that situation would emerge in the first quarter of 2015, which would require the Organization of the Petroleum Exporting Countries (OPEC) to take oil off the market.
Libya is supporting a cut in production while several OPEC members, including Iran, Kuwait and Saudi Arabia have all played down talks of any reduction in oil output.