Oil recovers from early decline, outlook clouded by China and global economy

SINGAPORE: Oil prices held in a narrow range on Tuesday, though the outlook for demand was clouded by a weak manufacturing activity survey from China, and a warning from the head of the International Monetary Fund that the global economy faced a tough year ahead.

Brent crude futures recovered from their early weakness, when prices fell by $1 a barrel, rebounding to $86.29 a barrel by 0737 GMT, an increase of 38 cents, or 0.44%. U.S. West Texas Intermediate crude was at $80.77 a barrel, up by 51 cents, or 0.64%.