Oil prices rebound after sharp losses as supply concerns dominate | Reuters

Oil prices rebound after sharp losses as supply concerns dominate | Reuters

Oil prices rebounded on Wednesday from sharp losses in the previous session as concerns about tighter supplies from Russia and Libya dominated, while industry data showed a drop in U.S. crude inventories last week.

Brent crude futures rose 66 cents, or 0.6%, to $107.91 a barrel by 0623 GMT while the front-month WTI crude futures contract, which expires on Wednesday, rose 46 cents, or 0.5%, to $103.02 a barrel. The second-month contract gained 64 cents to $102.69 a barrel.

Both benchmarks fell 5.2% in volatile trading on Tuesday after the International Monetary Fund (IMF) on Tuesday slashed its forecast for global growth by nearly a full percentage point, citing the economic impacts of Russia's war in Ukraine, and warning that inflation was now a "clear and present danger" for many countries. read more

"The sell-off yesterday on the back of the IMF revisions was probably overdone," said Warren Patterson, ING's head of commodities strategy based in Singapore.