Mumbai, 15/3: Oil prices rebounded more than 1 per cent on Wednesday, recovering from the previous day’s plunge, as a stronger OPEC outlook on China’s demand helped offset bearish global investor sentiment in the wake of the recent US bank failures.
Brent crude futures climbed 93 cents, or 1.2 per cent, to $78.38 a barrel by 0324 GMT. US West Texas Intermediate crude futures (WTI) gained 96 cents, or 1.4 per cent, to $72.29 a barrel. On Tuesday, the benchmarks fell more than 4 per cent to a three-month low.
“The oil market has bounced back on its own after the recent sharp losses,” said Toshitaka Tazawa, an analyst at Fujitomi Securities Co Ltd, adding some investors had taken advantage of the slide to hunt for bargains.
“The OPEC upgrade in Chinese oil demand outlook also lent support, though investors were still concerned over a cascading financial crisis after the recent collapse of US banks,” he said, noting that whether WTI can stay above $70 a barrel is being closely watched