Oil climbs back above US$50 after Monday's drop

London

OIL climbed amid speculation that the drop below US$50 a barrel in London for the first time since January was excessive.

Brent futures gained 1.7 per cent, paring a 5.2 per cent fall on Monday. US oil prices have slumped close to levels that will curb supply growth, according to consultant Petromatrix GmbH. The nation's crude inventories probably declined for a second week, according to a Bloomberg survey before government data due on Wednesday.

"It's a recovery from massively oversold levels," Amrita Sen at consultants Energy Aspects said. "Supplies will react - it is just that t…