LONDON (Reuters) - Oil edged toward $52 a barrel on Wednesday on China's interest rate cut and ahead of weekly U.S. oil data, which is forecast to show a draw down in distillate stocks, including heating oil.
U.S. light rose 65 cents to $51.42 a barrel by 8:10 a.m. EST. On Tuesday, it fell $3.73, nearly 7 percent, dragged down by weaker than expected U.S. GDP data.
London Brent crude rose $1.15 to $51.50.
China cut interest rates by 1.08 percent on Wednesday. The cut boosted hopes that a prolonged slowdown in the world's fastest growing oil consumer can be avoided and it provided some support to oil prices.
"Any positive news for China could be good for oil demand," said Sucden analyst Michael Davies. "It's quite clear the Chinese economy has issues but they appear to be taking action to help avoid a hard landing."
Oil has plummeted by almost $100 a barrel since hitting a peak above $147 a barrel in July and prices have failed to post three consecutive days of gains since September.
The slowing global economy has hit oil demand hard, with many analysts predicting demand growth next year could be flat or even fall for the first time since the early 1980s.
Weeky U.S. oil data to be released at 10:35 a.m. EST is expected to show a drop in distillate inventories as cold weather hits the U.S. Northeast, the world's largest heating fuel market, while crude and gasoline stocks are seen increasing.
Analysts polled by Reuters project a rise of 800,000 barrels in crude supplies, a 400,000 barrel increase in gasoline stocks and an 800,000 barrel fall in distillate inventories including heating oil.
The oil market is also watching the Organization of the Petroleum Exporting Countries meeting in Cairo on Saturday.
OPEC ministers are likely to debate a deep cut in oil supply amid the downward price spiral but hold off taking a decision until their policy-setting meeting in mid-December in Algeria.
"The bullish and bearish influences are pretty evenly balanced at the moment with speculation of a further OPEC production cut largely offset by the ongoing concerns over falling demand," said Bank of Ireland analyst Paul Harris.
(Additional reporting by Maryelle Demongeot in Singapore; Ikuko Kao in London; Editing by James Jukwey)
