FX.co ★ Oil Prices Little Changed In Cautious Trade

Oil prices were little changed on Wednesday, after having fallen over 6 percent during the previous three sessions on demand concerns.

Benchmark Brent crude futures edged up 0.1 percent to $88.19 a barrel, while WTI crude futures were marginally lower at $83.68.

Demand concerns weighed after business activity readings from Asia and Europe disappointed.

The dollar rose against a basket of currencies, pressuring dollar-denominated commodities including crude oil.

Chinese developer Country Garden Holdings Co has reportedly defaulted on a dollar bond for the first time ever, underscoring the depth of the problems in the country's property sector.

On the positive side, China announced plans to issue sovereign bonds worth 1 trillion yuan ($137 billion) in an effort to support recovery amid sluggish growth.

In Europe, a survey showed that German business morale improved more than expected in October, following five consecutive months of decline.

The weekly report from the American Petroleum Institute (API) was largely supportive for the oil market.

The API reported that crude oil inventories in the U.S. declined by 2.66 million barrels last week, marking a second straight week of declines.

Declines were also seen in inventories of gasoline and distillates.