Investing.com - Oil prices rebounded from an early steep decline on Monday, but trading looked likely to remain volatile ahead of economic data from China and the upcoming Federal Reserve meeting later in the week.
West Texas Intermediate crude oil futures for delivery in January were up 1.47% at $58.93 a barrel after falling to lows of $56.49 earlier, the weakest level since May 2009. U.S. oil prices lost 12.19% last week, falling to lows of $57.40 on Friday.
Benchmark Brent remained below the $65 a barrel level, but was up 1.96% to $63.37, off earlier five-and-a-half year lows of $60.69. Brent crude lost 10.45% last week.
Oil prices fell sharply in early trade before cutting losses and moving higher as markets mulled Friday’s cuts to the International Energy Agency’s global demand forecast.
The IEA cut its 2015 global oil demand growth forecast by 230,000 barrels per day to 0.9 million barrel per day, citing oversupply and a weaker global economy.
"Barring a disorderly production response, it may well take some time for supply and demand to respond to the price rout," the IEA said in its report.
U.S. equities posted their largest weekly decline in two-and-a-half years last week, led lower by losses in the energy sector. Federal Reserve officials have said that falling oil prices will help the U.S. economy.
Investors remained wary ahead of Wednesday’s Fed meeting, as ongoing speculation over prospects for a U.S. rate hike next year fuelled expectations that the U.S. central bank could adjust its forward guidance.
Investors were also looking ahead to Tuesday's manufacturing data from China after reports late last week added to signs of a slowdown in the world's second-largest economy.
London-traded Brent prices have fallen nearly 47% since June, when it climbed near $116, while WTI futures are down almost 46% from a recent peak of $107.50 in June.