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U.S. oil inventories rose by 6.2 million barrels in the week
ended Feb. 24, according to market sources citing American
Petroleum Institute (API) data, ahead of official Energy
Information Administration stocks figures at 1530 GMT.
Brent crude was down 41 cents, or 0.4%, to $83.04 a barrel at
1240 GMT., U.S. West Texas Intermediate (WTI) crude fell 60
cents, or 0.7%, to $76.45.
In other signs of ample supply, Russia's oil production reached
the pre-sanctions level for the first time in February, the
Kommersant business daily reported citing sources, and OPEC
production rose in February according to a Reuters survey.
"China's economy is rebounding now, and this can only be a
positive driver for oil prices," said Stephen Brennock of oil
broker PVM.
Resilient Russian supply is keeping buying interest at bay, he
added.
Oil was up earlier in the session, supported by an official
index that showed China's manufacturing activity expanded at the
fastest pace in more than a decade in February, adding to hopes
that the country's recovery can offset a global slowdown and
increase oil demand.
While China's official manufacturing purchasing managers' index
(PMI) climbed to 52.6 last month against 50.1 in January, a
private sector survey also showed activity rising for the first
time in seven months.
"Another round of upside surprise in China's PMI further
provides conviction of a stronger-than-expected recovery, which
supports a more optimistic oil demand outlook," said Yeap Jun
Rong, market strategist at IG.
(Additional reporting by Jeslyn Lerh; Editing by Shounak
Dasgupta, Sharon Singleton and Louise Heavens)
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