Oil rebounds 1 per cent after sharp losses; US data supports

[SINGAPORE] Oil rebounded more than 1 per cent on Wednesday, with Brent rising above US$71 a barrel, recouping some of its losses from the previous session as a turbulent market struggled to find a price floor.

The market has swung through sharp gains and losses since OPEC announced last week that it would maintain steady output in an oversupplied market. Brent and U.S. crude are down more than 30 per cent since June and touched five-year lows on Monday.

Brent crude hit a high of US$71.46 a barrel on Wednesday after falling US$2 in the previous session. The January contract was up 75 cents at US$71.29 by 0210 GMT.

U.S. crude for January was at US$67.85 a barrel, up 97 cents, after dropping more than US$2 the session before. The contract touched a high of US$67.97 after data from the American Petroleum Institute showed a bigger than expected fall in crude inventories.

Saudi Arabia and other key members have kept output stable in November, underlining their focus on defending market share, a Reuters survey found. OPEC's oil supply in November declined by 340,000 barrels per day (bpd) due to political instability in Libya.

REUTERS