By Henning Gloystein
SINGAPORE (Reuters) - Oil prices stabilized on Wednesday as a U.S. crude stock-draw countered weak economic data from China, although analysts said a glut that cut prices by half since 2014 would persist due to slowing demand.
U.S. crude prices were lifted after industry group the American Petroleum Institute reported American crude stockpiles fell 3.7 million barrels last week, with stocks at the Cushing, Oklahoma, delivery point for U.S. crude futures alone down almost 500,000 barrels. [API/S]
Internationally traded Brent crude was also up despite more weak data from China, which pulled down other commodities such as coal and copper.
Globally traded Brent crude futures were trading at $49.24 per barrel at 0713 GMT, up 16 cents from their last settlement. U.S. West Texas Intermediate (WTI) crude was firmer, trading at $46.66 a barrel, up 30 cents.
Despite the higher prices, analysts said that the oil market outlook remained bleak.
Flagging demand dragged China's giant factory sector into its sharpest contraction in 6-1/2 years in September, a private survey showed on Wednesday, triggering a flight to safety in Asian markets that analysts say could extend across the globe.
The preliminary Caixin/Markit China Manufacturing Purchasing Managers' Index (PMI) fell to 47.0 in September, the worst since March 2009, missing market expectations for 47.5 and slipping from August's final 47.3. Levels below 50 signify a contraction.
"China's economic slowdown continues, with factory output and investment growth both failing to hit targets.... With the economy showing little sign of recovery, the 7 percent GDP growth target set by the government may prove difficult to achieve," Energy Aspects said on Wednesday.
Energy Aspects said it expected global crude demand for the second half of the year to grow at a mere 1 million barrels per day, down from an increase of almost 2 million barrels per day in the first half of 2015.
Pressure could also build from other commodities, which have tumbled on the back of China's economic slowdown.
Benchmark copper on the London Metal Exchange closed down 3.6 percent on Tuesday, its biggest one-day loss since July 7, while key thermal coal futures closed at $50 a tonne, its lowest since 2003.