Oil prices steadied after earlier declines on Thursday caused by disappointing economic data from key economies, with investors awaiting a speech by US Federal Reserve Chair Jerome Powell on Friday for clues on interest rate moves.

Brent crude climbed 6 cents, or 0.1 percent, to $83.27 a barrel by 0855 GMT, after dropping to $82.57 earlier in the session. US West Texas Intermediate crude rose 4 cents, or 0.1 percent, to $78.93 a barrel, after falling to $78.22.

Manufacturing data from a host of purchasing managers' index (PMI) surveys on Wednesday painted a grim picture of the health of economies across the globe, raising demand concerns, analysts said.

Japan reported shrinking factory activity for a third straight month in August. Euro zone business activity also declined more than expected, particularly in Germany. Britain's economy looked set to shrink in the current quarter, leaving it in danger of falling into recession.