Oil hovers above six-week low as China readies crude reserve release | Reuters

Oil hovers above six-week low as China readies crude reserve release | Reuters

Oil prices rose slightly on Thursday, bouncing after a drop to six-week lows as investors wondered about how much crude major economies would release from their strategic reserves and how much that would ease global crude demand pressures.

Prices fell to the six-week lows early in the session as China said it was moving to tap reserves. On Wednesday, Reuters reported that the United States was asking large consuming nations to consider a stockpile release to lower prices.

Washington's bid to cool markets, asking China to join a coordinated action for the first time, comes as high gasoline prices and other inflationary pressures have sparked a political backlash. read more

"Japan and South Korea have shown resistance to releasing reserves, so we're coming back up a little bit," said Phil Flynn, Senior Analyst at Price Futures Group in Chicago. "The market is going to continue to be nervous, because it is on guard from a release."

Brent crude was up 53 cents, or 0.7%, at $80.81 a barrel at 11:55 ET (1655 GMT). The session low of $79.28 was the lowest since Oct. 7. U.S. West Texas Intermediate crude futures were up 18 cents at $78.54 a barrel. It also fell during the session to the lowest since early last month at $77.08.