West TX Oil Rebounds to above $83

West Texas Intermediate rebounded after falling below $80 for the first time since June 2012 on speculation prices decreased more than justified. Brent crude climbed from the lowest level in almost four years.

Futures advanced 1.1 percent in New York and 0.8 percent in London. Crude has tumbled on concern that a global supply glut is forming. Gasoline increased after U.S. government data showed that stockpiles of the fuel slipped last week as demand climbed.

“This is basically a relief rally,’ Tim Evans, an energy analyst at Citi Futures Perspective in New York, said by phone. ‘‘The market is extremely oversold technically and exhausted. There were nice draws in product inventories that are also giving the market a boost.’’

Bloomberg

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