Singapore – Oil prices rebounded on Thursday after opening the year down more than 9 percent, the worst yearly start in over three decades, as investors took advantage of the decline to buy futures on expectations long-term fuel demand will remain steady.
Brent crude futures gained 59 cents to $78.43 a barrel, while US West Texas Intermediate crude futures rose 69 cents to $73.53 a barrel.
Over the previous two sessions, Brent and WTI’s declines of more than 9 percent were the biggest two-day losses at the start of a year since January 1991.
US crude oil inventories rose by 3.3 million barrels last week along with gasoline stocks jumping 1.2 million barrels.
Big declines in the previous two days were driven by worries about a potential global recession, especially since short-term economic signs in the world’s two biggest oil consumers, the United States and China, appeared shaky.
Economic data from the United States weighed on prices as U.S. manufacturing contracted further in December. The ISM purchasing managers’ index (PMI) for manufacturing dropped for a second straight month in November, to 48.4 from 49.0. It was the weakest reading since May 2020, the Institute for Supply Management (ISM) said.