Investing.com - Crude oil futures rebounded from three-month lows struck in the previous session on Wednesday, after data showed that China’s economy grew more than expected in the second quarter.
On the ICE Futures Exchange in London, Brent oil for September delivery rose 0.44%, or 47 cents, to trade at $107.35 a barrel during European morning hours.
Official data released earlier showed that China’s economy expanded at an annual rate of 7.5% in the second quarter, above expectations for growth of 7.4%.
A separate report showed that industrial production in China rose by an annualized rate of 9.2% in June, compared to expectations for a 9% increase, after an 8.8% gain in the previous month.
China is the world''s second largest oil consumer after the U.S. and has been the engine of strengthening demand.
London-traded Brent prices fell to $105.59 on Tuesday, the lowest since April 7, before trimming losses to settle at $106.88, down 0.77%, or 83 cents, as worries over potential supply disruptions in the Middle East continued to subside.
Elsewhere, on the New York Mercantile Exchange, crude oil for delivery in August advanced 0.68%, or 68 cents, to trade at $100.64 a barrel.
U.S. oil futures fell to $99.01 a barrel on Tuesday, the lowest since May 5, before ending the day at $99.96, down 0.94%, or 95 cents.
Oil traders awaited the release of weekly supply data out of the U.S. later in the session to gauge the strength of oil demand from the world’s largest consumer.
Wednesday’s government report was expected to show that U.S. crude oil stockpiles fell by 2.1 million barrels last week, while gasoline stockpiles were forecast to increase by 0.6 million barrels.
After markets closed Tuesday, the American Petroleum Institute, an industry group, said that U.S. crude inventories fell by 4.8 million barrels in the week ended July 11, compared to expectations for a decline of 3.0 million barrels.
The report also showed that gasoline stockpiles decreased by 1.6 million barrels, while distillate stocks rose by 1.3 million barrels.
Meanwhile, Federal Reserve Janet Yellen continues her testimony in front of U.S. lawmakers on Wednesday.
Ms. Yellen said Tuesday that the U.S. economy is continuing to improve, but added that the recovery is not yet complete and reiterated that rates are likely to remain on hold for a considerable period after the bank’s quantitative easing program ends.
The remarks came during testimony to the Senate Banking Committee in Washington.
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