We saw a rally recently to 86.03 on the back of equities and the strong Chinese and German data, but the move has since stalled ahead of resistance at 86.35 and fallen back to 85.16.
API weekly inventory data is out later at 1630EDT with analysts looking for a build of around 2 million barrels over the last week, which could take the edge off the rally.
October Nymex crude trades around 85.40
