Oil: prices reverse early losses after Chinese PMI on upbeat Eurozone PMI data

Oil is trading higher today, reversing early losses after better-than-expected PMI data from Germany and the whole Eurozone. The data showed first signs of the ECB's quantitative easing, it's massive bond-buying program worth 60 billion euro a month, is stimulating the economy and that the recovery is gathering momentum.

Early in the session prices were under pressure after the preliminary Chinese HSBC Manufacturing PMI for March came in at 49.2, an 11-month low, as new orders declined, fuelling fears of an economic slowdown of the world's second largest economy and the second largest consumer of oil.

Later in the day the American Petroleum Institute will report Crude Oil Inventories. As of last week U.S. stockpiles are at a record level - the highest since recording starte 80 years ago.

Brent Crude added +0.52% and trading above USD55 again, currently trading at USD56.21 a barrel. On January 13th Crude set a low at USD45.19. West Texas Intermediate gained +0.72% currently quoted at USD47.79.

Oil prices declined sharply in recent months as worldwide supply exceeds demand in a period of low global economic growth, pushing stockpiles to record highs and weighing on prices.