Oil prices have increased after indication of tightening US supplies, which balanced concerns of weaker economic activity in China.
Brent crude oil edge-up 45 cents at $47.79 a barrel, while the US light crude oil increased 40 cents, at $44.83 a barrel, Reuters reported.
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According to economists, due to weakening of domestic demand for oil, manufacturing sector of China is shrinking adding to already existing worries that the economy may become even weaker.
Oil supply in the world’s biggest oil consumer US seems to be tightening following data that estimated a fall of more than one million barrels last week from the Cushing, Oklahoma.
A dispute between Middle East oil producers and US shale producers has led to a rise in global inventories.
SEB Markets chief commodities analyst Bjarne Schieldrop told the news agency: "Growth concerns for China and the close to 30% drop in Glencore shares have helped to drive bearish sentiment."
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By GlobalDataOil traders are keenly watching for official figures from the US Government on Wednesday with regard to supply and demand in the country.
A survey by the news agency revealed that US crude stockpiles last week declined 500,000 barrels.
