Oil Holds its Ground Despite PBOC's Actions

Crude oil futures traded higher, after China allowed the yuan to fall sharply for the second day as policymakers look to prop up the nation's ailing economy.

What's more, in its monthly report released earlier in the session, the IEA said that global oil demand is forecast to increase by 1.6 million barrels a day this year, raising its projection from last month by 200,000 a day.

However, the agency warned that a global oil glut will last through next year, saying that, while a rebalancing has clearly begun, the process is likely to be prolonged as a supply overhang is expected to persist through 2016--suggesting global inventories will pile up further.

Market participants are now looking ahead to fresh weekly information on U.S. stockpiles of crude. Yesterday's API data showed a small drawdown of the stockpiles . The data is due 15:30 BST.