Crude oil futures were higher in mid-morning trade in Asia Wednesday, rebounding from a slump in prices overnight, on bargain hunting and a report showing a surprise draw in US crude stocks.
At 10:00 am Singapore time (0200 GMT), ICE January Brent crude futures were up 64 cents/b (1.02%) from Tuesday's settle at $63.17/b, while the NYMEX January light sweet crude contract was 57 cents/b (1.07%) higher at $54.00/b.
US crude stocks fell 1.5 million barrels in the week ended November 16, according to American Petroleum Institute data released Tuesday; analysts surveyed Monday by S&P Global Platts had been expecting a 2.8 million-barrel build.
More definitive data from the Energy Information Administration is due for release later Wednesday.
"The rise in prices this morning [Wednesday] is sentiment driven and probably just a correction to the over-reaction by the market following the plunge in prices overnight," Mizuho Bank senior economist Vishnu Varathan said. "Bargain hunting and production cuts previously mentioned by Saudi Arabia also definitely played a role in the higher prices this morning," Varathan added.
US President Donald Trump Tuesday voiced support for OPEC kingpin Saudi Arabia, highlighting its efforts to keep "oil prices at reasonable levels" by boosting production ahead of the reimposition of US sanctions on Iran, Platts reported.
"The news that the US President wouldn't punish Saudi Arabia any further for the killing of [journalist] Jamal Khashoggi eased geopolitical risks. There has been concern that Saudi Arabia may tighten oil markets to push prices higher if it was severely punished by the US," ANZ said in a note.
OPEC and its allies are due to meet December 6-7 in Vienna to determine output policy.
As of 0200 GMT, the US Dollar Index was 0.7% higher at 96.720.
