Oil lurched to new 12-year lows before paring some losses yesterday, with some traders betting a rout triggered by fears over China demand and swelling US stockpiles had run its course, for now.

It will take more than $40 crude to make the Organization of Petroleum Exporting Countries (Opec) change its mind, analysts said before the group’s December 4 meeting in Vienna.

Oil fell as much as 4% yesterday after China devalued its currency, raising questions about its demand for crude, while a new projection showed non-Opec producers were more resilient than expected to keeping output high amid low prices.