Oil prices have increased after indication of tightening US supplies, which balanced concerns of weaker economic activity in China.

Brent crude oil edge-up 45 cents at $47.79 a barrel, while the US light crude oil increased 40 cents, at $44.83 a barrel, Reuters reported.

According to economists, due to weakening of domestic demand for oil, manufacturing sector of China is shrinking adding to already existing worries that the economy may become even weaker.

"Growth concerns for China and the close to 30% drop in Glencore shares have helped to drive bearish sentiment."

Oil supply in the world’s biggest oil consumer US seems to be tightening following data that estimated a fall of more than one million barrels last week from the Cushing, Oklahoma.

A dispute between Middle East oil producers and US shale producers has led to a rise in global inventories.

SEB Markets chief commodities analyst Bjarne Schieldrop told the news agency: "Growth concerns for China and the close to 30% drop in Glencore shares have helped to drive bearish sentiment."

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Oil traders are keenly watching for official figures from the US Government on Wednesday with regard to supply and demand in the country.

A survey by the news agency revealed that US crude stockpiles last week declined 500,000 barrels.