Oil rebounded more than 1 percent on Wednesday, with Brent rising above $71 a barrel, recouping some of its losses from the previous session as a turbulent market struggled to find a price floor. The market has swung through sharp gains and losses since OPEC announced last week that it would maintain steady output in an oversupplied market. Brent and U.S. crude are down more than 30 percent since June and touched five-year lows on Monday.
Brent crude LCOc1 hit a high of $71.46 a barrel on Wednesday after falling $2 in the previous session. The January contract was up 75 cents at $71.29 by 0210 GMT (09:10 p.m. ET). U.S. crude CLc1 for January was at $67.85 a barrel, up 97 cents, after dropping more than $2 the session before. The contract touched a high of $67.97 after data from the American Petroleum Institute showed a bigger than expected fall in crude inventories.
“The market’s volatility is a result of people working out what’s going to happen next,” said Jonathan Barratt, chief investment officer at Ayers Alliance Securities. He said a low price “will force weak people out of the market and the strong will prevail”.