Investing.com - Crude oil prices gained in Asia on Tuesday after mixed China data showed a narrower than expected drop in exports.
On the New York Mercantile Exchange, WTI crude for November delivery rose 0.73% to $47.45 a barrel.
In China the trade balance for September came in at a surplus of RMB376.2 billion, compared to RMB368 billion in August. Dollar figures were not immediately available. Imports plunged 17.7%, well below the expected drop of 15%, but exports eased 1.1%,better than the 6.3% decline seen. An official with the China customs office said the recent weaker yuan aided exports.
Overnight, crude futures tumbled more than 5% on Monday, as energy traders locked into profits from last week's three-month high, amid indications of a tightening in the global supply-demand imbalance.
Investors also reacted to a monthly report from OPEC, which showed that the world's largest oil cartel pumped more than 31.5 million barrels per day in September, an increase of 110,000 bpd from the previous month.
On the Intercontinental Exchange (ICE), brent crude for December delivery wavered between $50.19 and $53.62, before closing at $50.21, down 2.70 or 5.11% on the day. Brent futures also spiked last week, soaring above $54 a barrel, its highest level since late-August.
The surge in OPEC production last month coincides with forecasts of stronger demand over the next year. In 2016, the organization projects that global oil demand will increase to 94.11 million barrels per day, up from previous estimates of 92.86 bpd. Citing stronger than expected demand in the U.S. and Europe, as well as South Korea, OPEC Secretary General Abdalla Salem El-Badri expects to see robust demand in global energy markets over the next 12 months.
Separately, Kuwait oil minister Ali al-Omair offered no signals on Monday that OPEC will alter its production strategy, days after reports surfaced that Saudi Arabia and Russia could meet again in the coming weeks to craft a strategy to stabilize crashing prices. While Russia has reportedly urged OPEC to lower supply levels over the next year, it still appears reluctant to surrender market share.
The cartel also projected in its monthly report that non-OPEC supply growth next year will wane dramatically, as U.S. shale producers are forced to continue to slash output amid lower prices. In 2016, OPEC forecasts that non-OPEC supply will increase by 720,000 bpd, down from previous estimates of 1.3 million. Last Friday, oil services firm Baker Hughes (N:N:BHI) said the number of U.S. oil rigs fell for a sixth consecutive week, offering another signal that producers have been forced to reduce the number of wells kept online in the face of near-record low prices.