Oil prices turned higher on Thursday, after China's central bank sought to rein in mounting pessimism about the country's real estate market and broader economy.
Prices fell in the previous session, fueled by concerns about the volume of fuel demand affected by a major crisis in the real estate sector that impedes the momentum in the Chinese economy and the possibility of raising interest rates again in the United States.
price move
Brent crude futures rose 71 cents, or 0.85 percent, to $84.16 a barrel, while US West Texas Intermediate crude rose 70 cents, or 0.9 percent, to $80.08 a barrel, by 1214 GMT.
And the futures contracts for both raw materials had suffered losses of about half a percentage point in the beginning of Asian trading, Thursday.
Oil dealers like the fact that China will not accept weak economic activity, said Naeem Aslam, an analyst at (Zay Capital Markets), after the Chinese central bank said it would adjust and improve real estate policies as soon as possible.
Interest rates also remain in focus after the release of the minutes of the Federal Reserve's (Central Bank of America) meeting for the month of July on Wednesday. The minutes of the meeting showed that central bank officials did not provide strong signals to stop raising interest rates in efforts to prioritize controlling inflation.
Higher interest rates increase borrowing costs for businesses and consumers, which could slow economic growth and lower demand for oil.
Data released on Wednesday showed that US crude oil inventories fell by about six million barrels last week, due to the strength of export operations and the pace of refinery operation.
