A pump jack is seen at sunrise near Bakersfield, California October 14, 2014. Reuters/Lucy Nicholson
Oil prices rose on Tuesday after evidence of tightening supplies in the United States, the world’s biggest oil consumer, outweighed concerns for the health of the Chinese economy.
China’s giant manufacturing sector is shrinking, economists say, as domestic demand falters, fanning worries that its economy may be slowing more sharply than feared.
Asian stock markets skidded to 3-1/2-year lows on Tuesday and the dollar sagged.
But the outlook for the U.S. economy looks brighter and oil supply there seems to be tightening, with one report estimating a drawdown of over 1 million barrels last week from the Cushing, Oklahoma delivery hub for U.S. crude.
Brent crude oil was up 55 cents at $47.89 a barrel by 1340 GMT after dropping 2.5 percent on Monday. U.S. light crude oil was also up 45 cents, at $44.88.
Oil prices have stabilized over the last month after more than a year of dramatic falls and rallies that have seen benchmark Brent swing between a high above $115 a barrel in June 2014 to a low of just under $42 in August this year.
Underlying the collapse in prices is a huge oversupply as Middle East oil producers have fought for market share with U.S. shale producers, increasing stockpiles worldwide.
Global commodity prices have slumped, squeezing income for producers of key raw materials and triggering a sector-wide crisis. Shares in commodity trading firms, such as Glencore…