Oil prices diverged on Wednesday as markets reacted to mixed sentiment over the outlook for China and the wider global economy. Brent futures rallied but remained below $30 a barrel, as the IMF said that the recent sharp collapse in the price of oil was dragging down the global economy. The International Energy Agency meanwhile said that crude futures were set to fall further this year as supply vastly exceeds demand, with major oil exporter Iran's return to the market offsetting any production cuts from other countries. Despite the bleak series of announcements, Brent oil prices made sizeable gains on better than expected Chinese economic data, said Commerzbank analyst Carsten Fritsch.