Oil prices steady after U.S. stock draw, but China outlook drags

By Henning Gloystein
SINGAPORE, Aug 13 (Reuters) - Oil prices were steady early
on Thursday, supported by lower U.S. stockpiles and a firm
demand outlook, but worries over China's economy continued to
weigh.
A 1.7-million barrel drop in U.S. stockpiles last week
helped to at least temporarily halt a price slide that has
lasted since May and seen WTI and Brent lose over a quarter of
their value.
A relatively bullish outlook by the International Energy
Agency (IEA) on Wednesday also supported prices.
U.S. crude CLc1 was trading at $43.27 per barrel at 0037
GMT, down 3 cents from Wednesday's close. Brent futures LCOc1
were 5 cents higher at $49.71 a barrel.
"Prices recovered overnight after initial declines,
supported by an IEA announcement and a weaker dollar," ANZ bank
said on Thursday.
The IEA said global oil demand growth in 2015 would be the
strongest in five years, although it added that global
oversupply would last through 2016.
But analysts said there were some doubts around a bullish
demand forecast, especially in Asia where China's economy is
showing increasing signs of weakness, with the devaluation of
its yuan currency potentially denting demand for imports of
fuel.
China's implied oil demand fell in July from the previous
month amid a continuing drop in the nation's vehicle sales that
could mute growth further in the second half of 2015.
China consumed roughly 10.12 million barrels per day (bpd)
of oil in July, down more than 4 percent from June, although the
implied use was up from 9.72 million bpd a year ago, according
to calculations based on preliminary government data.
The month-on-month fall came as Chinese auto sales dropped
7.1 percent in July from a year earlier, the fourth straight
monthly decline and biggest since February 2013.