SINGAPORE: Oil prices rebounded in Asia on Wednesday following a sharp decline in the previous session, analysts said, as investors await a weekly US stockpiles report later in the day.
US benchmark West Texas Intermediate (WTI) for March delivery rose 44 cents to $50.46 a barrel while Brent crude for March rose 16 cents to $56.59 in afternoon trade.
Nicholas Teo, market analyst at CMC Markets in Singapore, said the downbeat market outlook from the International Energy Agency had pushed both contracts down between three and five percent in the previous session.
The IEA report points to a “persistent global supply glut” for crude, Teo said.
The agency said in its five-year forecast that prices will recover slightly from current levels by 2020 but remain considerably below the $100-plus per barrel seen in June.