Investing.com -- Oil prices faltered again on Tuesday after a weaker-than-expected survey of U.S. manufacturing put another dent in the bull case, adding to concerns about global demand in the wake of similarly bleak surveys from elsewhere around the world.
The Institute of Supply Management’s purchasing managers index posted its lowest reading in 10 years, falling to 47.8 from 49.1 in September and disappointing consensus forecasts of a rebound above 50.
Earlier in the day, similar surveys from Japan to the euro zone and U.K. had also painted a picture of a global manufacturing sector still suffering from the fallout of the U.S.-China trade conflict, Brexit and other concerns.
By 10:45 AM ET, U.S. WTI crude futures were up 0.5% on the day at $54.34, having given up over half of their earlier gains. Brent, the international benchmark, was at $59.79, up 0.7%. That's now below the $60/barrel mark that most oil and gas majors have used as their benchmark in recent years.
Those gains were a modest upward correction after a brutal slide of over 10% in the last two weeks, driven by surveys by Reuters and Bloomberg which both suggested a modest dip in OPEC exports in September.
However, growing fears of stalling demand have proved more durable than concerns about supply squeezes due to tension between Iran and Saudi Arabia. With the national oil company Saudi Aramco pledging to honor all commitments to clients and claiming a speedy restoration of operations at the key Abqaiq processing facility, the perceived risk of a prolonged squeeze to supply has sharply receded.
Later Tuesday, the American Petroleum Institute is due to release its figures on domestic oil supplies. Official government data are due on Wednesday, and the last two reports have both showed increases in crude inventories.
Elsewhere, Gasoline RBOB Futures were up 1.3% at $1.5866 a gallon, whiile Natural Gas Futures were down 2.2% at $2.279 per 10,000 MBtu.