U.S. oil edges up after tumbling to lowest since June 2017 on economy fears

Oil prices were mixed on Wednesday as the U.S. benchmark rebounded from steep losses in the previous session, even though concern over the health of the global economy continued to overshadow the market.

U.S. West Texas Intermediate (WTI) crude futures CLc1, were up 13 cents, or 0.31 percent, at $42.66 per barrel, at 07:48 GMT. Prices earlier rose as much as 2 percent. They slumped 6.7 percent in the previous session to $42.53 a barrel, the lowest since June 2017.

Brent crude oil futures LCOc1 were down 29 cents, or 0.57 percent, at $50.18 a barrel and earlier fell to the lowest since July 2017. They skidded 6.2 percent in the previous session to $50.47 a barrel.

“$50 is a psychological support level (for Brent),” said Margaret Yang, a market analyst for CMC Markets in Singapore.

“But market confidence needs to be restored for oil price...that include an equity market rebound and/or a bigger production cut from major oil exporters,” Yang said, referring to an OPEC-led agreement to lower output starting next month.

Elsewhere, U.S. political turmoil triggered by the partial shutdown of the federal government is also adding to market concerns. President Donald Trump said on Tuesday that a government shutdown could last until his demand for funds to build a U.S.-Mexico border is met.

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