Oil Prices Rally $3 from Lows, Supported by Output Cuts and Tighter Supply

Despite concerns about the Chinese economy causing a $2 drop in crude prices earlier in the day, oil made an impressive recovery in New York trading, rallying $3 to reach $83.03. This turnaround demonstrates independent strength in the oil market, which is currently tight. However, there are concerns that the trade may have been influenced by leaked API data, with official data set to be released later. If oil can maintain its strength through the upcoming data releases, it has a good chance of surpassing the year-to-date highs set in April.