The price of Brent oil futures traded near $95 a barrel today following a positive Chinese factory survey.
Due to the steady purchasing manager’s index (PMI) from China, the crude benchmark began firmer in October after it dropped to its lowest since June 2012 on Tuesday.
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Reuters reported that Brent oil price for November delivery was up 30 cents at $94.97 a barrel while US November crude gained 36 cents to $91.52 per barrel.
Concerns over excess oil supplies and the strong US dollar pulled the price of Brent down by more than $2 on Tuesday.
OptionsXpress market analyst Ben Le Brun was quoted by the news agency as saying that concerns over a supply glut will keep price gains in check unless Organization of the Petroleum Exporting Countries (OPEC) moves to reduce production.
A survey by Reuters has found that OPEC oil supply surged to its highest in about two years in September following an additional recovery in Libya and higher production from Saudi Arabia and other Gulf members.
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By GlobalDataSeveral OPEC members are concerned over the decline in prices and the group may debate on whether production needs to be cut at its meeting, which will be held on 27 November in Vienna.
If there is a production cut, it will be the group’s first formal reduction since the financial crisis in 2008.
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