'%20id='ico-down'%20stroke='%23000000'%20stroke-width='1.5'%3e%3cg%20transform='translate(1092.250000,%20254.750000)'%3e%3cpolyline%20id='Path-2-Copy-4'%20transform='translate(5.500000,%202.750000)%20scale(1,%20-1)%20rotate(-180.000000)%20translate(-5.500000,%20-2.750000)%20'%20points='0%200%205.5%205.5%2011%200'%3e%3c/polyline%3e%3c/g%3e%3c/g%3e%3c/g%3e%3c/svg%3e){kind=small}
Oil prices rebounded Tuesday on talk of a firmer market despite lingering concerns regarding a glut of crude.
US benchmark West Texas Intermediate for delivery in December jumped $1.27 to $47.41 a barrel compared with Monday’s close.
Brent North Sea crude for December won $1.14 to stand at $49.93 a barrel in late London deals.
Crude prices recovered “after the UAE energy minister said that he saw oil prices increasing once more as demand recovers and the shale oil supply drops”, said Michael Hewson, chief market analyst at traders CMC Markets UK.
Prices had dipped on Monday after data showed Russian oil production hit a new record. They had fallen also on news that China’s manufacturing output continued to contract.
Current price levels are meanwhile more than 50 percent lower than their peaks in June 2014, when a barrel of oil was selling for more than $100.
A key reason for the sustained drop in prices has been an excess of supplies caused mainly by high US output from shale rock.
Markets were looking ahead to official data due Wednesday on the level of US commercial crude stockpiles.
burs-bcp/rl