Brent crude futures rose off session lows on Tuesday after upbeat Chinese data strengthened the outlook for demand from the world’s number two oil consumer. The oil benchmark dropped to a one-week low below 113 dollars a barrel earlier on Tuesday after Russia offered to help put Syria’s chemical weapons under international control. The gesture has calmed worries of a potential U.S.-led strike against the country. China’s industrial output rose a forecast-beating 10.4 per cent in August from a year ago, while retail sales increased 13.4 per cent, government data showed. Those numbers added to evidence that the Chinese economy may avoid a sharp slowdown after data over the past two days showed exports rose more than predicted in August and inflation remained tame. “It’s a plus for demand outlook for industrial commodities generally and builds on the positive picture we’ve been seeing out of China for the past couple of months,� said Ric Spooner, chief market analyst at CMC Markets. Brent oil for October delivery was down 42 cents at 113.30 per barrel by 0659 GMT, after touching a session low of 112.61 dollars, it’s weakest since Sept. 2. The crude benchmark fell 2.1 per cent on Monday, its steepest single-day decline since June 20. U.S. crude, also for delivery next month, dropped as low as 108.20 dollars a barrel before paring its losses to 108.66 dollars, down 86 cents. (Reuters/NAN)

Source