Investing.com - Oil prices rose sharply on Tuesday, moving further away from last week's multi-month lows as investors gauged the health of the global economy.
On the ICE Futures Exchange in London, Brent for December delivery tacked on 77 cents, or 0.9%, to trade at $86.17 a barrel during U.S. morning hours.
A day earlier, Brent prices lost 76 cents, or 0.88%, to end at $85.40 a barrel.
London-traded Brent prices fell to a four-year low of $82.93 on October 16 as concerns over the global economic outlook and the impact on future demand prospects dampened the appeal of the commodity.
Official data released earlier showed that China’s economy expanded at an annual rate of 7.3% in the third quarter, down from growth of 7.5% in the preceding quarter.
While the figure exceeded market expectations of 7.2%, it was also the slowest expansion since the first quarter of 2009.
A separate report showed that industrial production rose by an annualized rate of 8.0% in September, compared to forecasts for a 7.5% increase, after a 6.9% 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.
Meanwhile, Reuters reported that the European Central Bank is examining plans to purchase bonds issued by companies, or corporate debt, to help shore up growth and boost slowing inflation in the euro area.
The report said the bank could activate the new stimulus plan as soon as December and start bond purchases by early next year.
Elsewhere, on the New York Mercantile Exchange, crude oil for delivery in November traded at $82.93 a barrel, up $1.02, or 1.25%.
Nymex oil prices declined 15 cents, or 0.18%, to settle at $81.91 a barrel on Monday.
New York-traded oil futures tumbled to $79.78 a barrel on October 16, a level not seen since June 2012.
Market players awaited the release of fresh weekly information on U.S. stockpiles of crude and refined products to gauge the strength of demand in the world’s largest oil consumer.
The American Petroleum Institute will release its inventories report later in the day, while Wednesday’s government report could show crude stockpiles rose by 2.7 million barrels in the week ended October 17.
London-traded Brent prices have fallen nearly 26% since June, when it climbed near $116, while WTI futures are down almost 23% from a recent peak of $107.50 in June.
Concerns over weakening global demand combined with indications that the Organization of the Petroleum Exporting Countries will not cut output to support oil markets have weighed on prices in recent weeks.
Global supplies have far outpaced demand in recent months. A report earlier in the month showed that OPEC oil output hit a two-year high of 31 million barrels per day in September, led by higher production from Iraq and Libya.
Some market analysts believe that only a cut in output by the oil cartel will halt the decline in prices.
Oil ministers from the 12-member group are scheduled to meet in Vienna on November 27 to consider whether to adjust their production target for early 2015.