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Oil rebounded in Asia today as dealers consolidated positions and awaited the latest US crude stockpiles report for fresh leads following sharp falls due to a supply glut, analysts said.
US benchmark West Texas Intermediate (WTI) for January delivery rose 89 cents to $67.77 while Brent crude for January gained 66 cents to $71.20 in mid-morning trade.
WTI tumbled $2.12 in New York on Tuesday, while Brent fell $2.00 after Iraq announced plans to boost the country's crude oil exports after striking a deal with the autonomous Kurdish region.
The decline compounded the hammering taken by oil prices late last week after the Organization of the Petroleum Exporting Countries left its output ceiling unchanged, despite the supply glut driving prices sharply lower.
"We are seeing some consolidation in the market at the moment," Daniel Ang, investment analyst at Phillip Futures in Singapore, told AFP.
"We are likely to see such ups and downs for the rest of the year as the crude market finds a good price to stabilise upon after recent losses," he added.
Ang said dealers were also awaiting the US weekly petroleum report for the week to November 28 to be released later Wednesday. The report gives an indication of demand in the world's biggest oil consuming nation.
Analysts are projecting the report will show a 600,000-barrel increase in crude stockpiles, the Wall Street Journal said.
The United States has 383 million barrels of crude stored currently, according to official data.
The market is also expected to digest the rise in China's official services sector purchasing managers index to 53.9 in November from October's 53.8. A rating above 50 indicates growth.
