Crude oil prices hold steady in volatile week

NEW YORK, Aug. 26 (UPI) -- Crude oil prices were treading water in early Wednesday trading as market volatility continued to spread from weak Chinese economic trends.

Brent crude oil prices were relatively unchanged from the previous session, moving up about a half percent to $43.35 per barrel. The U.S. benchmark for crude oil prices, West Texas Intermediate, held steady at $39.33 per barrel at the opening of the trading day in New York.

Both indices are at multi-year lows amid growing concerns about the health of the global economy. Crude oil prices started moving lower in June 2014 as markets moved heavily toward the supply side in part because of gains in U.S. crude oil production and weak global economic growth.

China's Shanghai Composite Index has suffered a series of dramatic selloffs in recent trading days. The 1.2 percent drop by the close of trading Wednesday was only marginal compared with previous sessions.

The Chinese government has injected cash into the market in an effort to buffer against the losses. While slowing, the economy there is expanding by more than 6 percent. Boeing this week said it expected the commercial airline industry to grow substantially in the coming years.

Beijing moved to devalue the currency as well. Trade partner Russia, meanwhile, said it was looking to navigate the diminished currency. The ruble, the Russian currency, is in a free fall.

Zhu Haibin, chief economist for J.P. Morgan China, told the official Xinhua News Agency deflationary pressures remain despite government intervention.

Oil demand from China, however, continues to indicate expected growth, a reason given by the Organization of Petroleum Exporting Countries to keep production steady. The mixed signal was in part reflected in market volatility for Wednesday, with the Dow opening strong in the face of lingering weakness in Beijing.