Oil prices rally more than 2% after slump

London

OIL prices rallied more than 2 per cent on Thursday, clawing back part of a 6 per cent slump triggered by a jump in US crude inventories and record Saudi output, although analysts said sentiment remained bearish.

A 10.95-million-barrel surge in US crude stockpiles to an all-time high of 482.4 million last week, the biggest gain in 14 years, and Saudi oil production of 10.3 million barrels a day (bpd) in March battered crude on Wednesday.