Oil is recovering from early losses

Crude oil prices moved in a narrow range on Tuesday, as expectations about the future of demand were affected by a weekly survey that showed shrinking factory activity in China and the International Monetary Fund’s warning that the global economy will face a difficult year.

Brent crude futures recovered from an earlier drop of $1, rising 38 cents, or 0.44 percent, to $86.29 a barrel by 0737 GMT.

US West Texas Intermediate crude rose 51 cents, or 0.64 percent, to $80.77 a barrel.

The weak survey of factories in China, the largest importer of crude and the second largest consumer of oil in the world, an influential factor. The Caixin Market Purchasing Managers’ Index fell to 49.0 in December from 49.4 in November. The index remained below the 50-point reading that separates growth from contraction for the fifth month in a row.

Kristalina Georgieva, managing director of the International Monetary Fund, said on Sunday that the United States, Europe and China – the main engines of global growth – were all experiencing a simultaneous slowdown, adding to the pessimistic outlook.