Oil prices stabilised on Wednesday following news that China’s central bank will back the country’s economy, but prices stayed near six-and-a-half-year lows due to oversupply.
Brent went up 20 cents at $43.41 a barrel and US crude increased 15 cents at $39.46 a barrel, Reuters reported.
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China reduced interest rates and lowered the reserves to be held by the banks as part of a move to soothe fears about the weakening economy.
Capital Economics commodities economist Thomas Pugh told the Reuters that the oil market was: "Already pricing in a worst case scenario in China at the moment."
Organization of the Petroleum Exporting Countries members are producing high-volumes of oil, with Iran planning to increase crude production to regain its lost export share following lifting of international sanctions.
Industry data from the American Petroleum Institute highlighted a decline in crude inventories in the US by 7.3 million barrels to 449.3 million due to a rise in refinery runs.
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By GlobalDataThe Energy Information Administration is expected to release data on the US Government oil stockpiles later this week.
