Oil prices rebounded today as official data revealed a surprise drop in US crude stockpiles, indicating firmer demand in the world's biggest economy.
Brent North Sea crude for delivery in November jumped USD 1.05 to stand at USD 95.72 a barrel in late London deals.
US benchmark West Texas Intermediate (WTI) for November increased by USD 1.47 to USD 92.63 a barrel compared with yesterday's close.
Prices "benefitted from a more subdued dollar and reduced US oil stocks," said Jasper Lawler, analyst at trading firm CMC Markets.
The Department of Energy said US reserves of commercial crude dropped by 1.4 million barrels last week, confounding analyst expectations for a rise of 900,000.
WTI prices had plummeted USD 3.41 a barrel and Brent tumbled USD 2.53 yesterday owing to a supply glut and a rising dollar, which has this week reached six-year highs against the yen and two-year peaks versus the euro.
A stronger dollar makes oil more expensive for buyers using rival currencies, dampening demand.
"The slide in prices was triggered by a combination of weaker US economic data that gave rise to concerns about demand, plus growing OPEC supply," Commerzbank analysts said in a note to clients.
