Oil edged up from a more than two-year low to near $95 a barrel on Wednesday as a slightly better-than-expected Chinese factory survey countered worries of an economic slowdown in the world's No. 2 oil consumer and ample supplies.

Growth in China's manufacturing sector held up in September but remained subdued. The Purchasing Managers' Index (PMI) came in at 51.1, just ahead of forecasts for a 51.0 reading and offering some relief to investors worried about slowing growth.

Concern over increasing OPEC oil supply, weak European and Chinese growth and a stronger dollar pushed global benchmark Brent to its lowest since June 2012 on Tuesday, and the same factors are likely to keep a lid on any price recovery.

"The sentiment remains overwhelmingly bearish at the moment: there is little support for demand, while supply is strengthening," Carsten Fritsch, a commodities analyst at Commerzbank, said.

Brent crude was up 23 cents at $94.90 a barrel by 1005 GMT. On Tuesday, it touched a session low of $94.24, its weakest since June 2012. U.S. crude gained 41 cents to $91.57.

European economic data offered little relief. The euro zone's PMI shrank to 50.3 in September, its lowest since July 2013 and only slightly above the 50 that separates growth from contraction.

The dollar index rose slightly on Wednesday, weighing on oil prices after reaching a four-year peak on Tuesday.

US crude gained some support from industry group the American Petroleum Institute's weekly supply report, which said crude inventories fell by 463,000 barrels, rather than increasing by 700,000 barrels as analysts had expected.

Investors will be looking to official inventory data from the U.S. government, due on Wednesday at 1430 GMT, to confirm the surprise drawdown.

Brent's drop below $100 has brought prices below the level publicly endorsed by top OPEC exporter Saudi Arabia, but so far there has been no sign of any price-supporting supply cutbacks from the Organization of the Petroleum Exporting Countries.

In September, OPEC oil supply jumped to its highest in almost two years, a Reuters survey found, due to a further recovery in Libya and higher output from Saudi Arabia and other Gulf producers.

"OPEC needs to cut production to rebalance oil markets, yet we see no evidence or sense of urgency for a faster reduction in production," Morgan Stanley analysts including Adam Longson said in a note.

Some OPEC members have expressed concern over the drop in prices, and a debate is likely to occur at its meeting on Nov. 27 in Vienna on whether output needs to be reduced.

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