Oil is bouncing thanks to China
Chinese preliminary oil demand for 2015 was at a record 10.32 million barrels per day, up 2.5% on 2014's figure, according to Reuters.
That's sent the price of Brent oil bouncing 2.52% to $29.27 (£20.47) and US crude climbing 0.84% to $30.65 (£21.43) at 8.55 a.m. GMT (3.55 a.m. ET).
The rally comes after a price slump in early morning trade on Tuesday, after Iran's oil ministry ordered an increase in daily production of 500,000 barrels. Iran is hoping to take advantage of an expected imminent lifting of sanctions after reaching an agreement over its nuclear programme with world powers.
Mic Mill, head of client services at spread betting company CapitalIndex, says in an emailed statement this morning:
Oil enjoyed some much-needed buying interest as strong Chinese fuel consumption helped Brent to trade up above $29 a barrel again, but any upside for Brent is tempered by the knowledge that Iranian oil will be exported to Europe but not to the US leading WTI to trade at a premium.