LONDON, Jan 21, 2010 (AFP) - Oil prices rose slightly on Thursday before the release of widely-monitored data on US energy reserves and following sharp losses caused by concern about the Chinese economy.
New York's main contract, light sweet crude for March delivery, rose 13 cents to 77.87 dollars a barrel.
Brent North Sea crude for delivery in March edged up one cent to 76.32 dollars in early London trading.
Crude futures had closed down almost 1.50 dollars lower on Wednesday amid market concerns that a credit squeeze in China and swelling US stockpiles could dampen demand for the key commodity, traders said.
"China gets a touch of overheat -- markets across the rest of the world shudder! That is the way of things today in a global economy controlled as much in the East as it is in the West," said analyst Howard Wheeldon at BGC Brokers.
Top Beijing regulator Lim Mingkang on Wednesday said that China would rein in credit after explosive growth last year as the world's most populous nation moves to cool its red-hot economy, also a major energy consumer.
The chairman of the China Banking Regulatory Commission told a forum in Hong Kong Wednesday that new bank loans in the country this year would fall to about 7.5 trillion yuan (1.1 trillion US dollars) from about 9.5 trillion yuan in 2009.
Analysts have said the policy was likely a response to concerns about asset bubbles, bad loans and an overheating economy.
Data released by China on Thursday showed the economy grew 8.7 percent in 2009, well exceeding the government's target of 8.0 percent.
The US Department of Energy (DoE) was meanwhile preparing to publish its weekly report on energy stockpiles in the United States -- the world's biggest energy consuming nation, followed by number two China.
Analysts polled by Dow Jones Newswires said they expected US crude reserves to show a rise of 1.9 million barrels. A rise to inventory levels is seen as an indication of weak demand.
Gasoline stocks are seen increasing by 1.3 million barrels, the poll said. The DoE is releasing its report one day later than normal owing to a US bank holiday on Monday.
The OPEC oil producers' cartel this week forecast world oil demand in 2010 to grow by 0.8 million barrels per day to average 85.1 million bpd.
The Organization of Petroleum Exporting Countries, which is headquartered in Vienna, pumps about 40 percent of the world's oil supplies.
