Oil steady as China concerns jostle with tightening inventories

​Oil steadied as traders weighed concerns over China's faltering economy against industry estimates pointing to lower U.S. inventories.

West Texas Intermediate held near US$81 a barrel after losing 2.6 per cent in the week's first two sessions. Equity indexes and other commodities fluctuated amid growing jitters in China's stock market and shadow banking industry, which have added to signs that the Asian giant's economy is stuttering. 

Still, the American Petroleum Institute said nationwide crude stockpiles shrank 6.2 million barrels last week, according to people familiar with the figures. Inventories at the key Cushing, Oklahoma, hub were also seen declining.