Oil prices rebounded on Thursday amid dollar weakness and as investors emerged to buy dips after two sessions of steep losses, though economic concerns capped recovery.
Brent crude futures had climbed 75 cents, or 1.0%, to $78.59 a barrel by 0400 GMT, while U.S. West Texas Intermediate crude futures rose 77 cents, or 1.1%, to $73.61 a barrel.
Big declines in the previous two days were driven by worries about a potential global recession, especially since short-term economic signs in the world’s two biggest oil consumers, the United States and China, appeared shaky.
“Coming after the heavy sell-off since the start of the week, it seems that oil prices are attempting to tap on some weakness in the U.S. dollar this morning for some reprieve,” said Jun Rong Yeap, market strategist at IG.
“The second month of contraction in US manufacturing PMI continues to reflect ongoing slowdown in economic activities, which may leave buyers shunning” the market, he added.
Brent’s and WTI’s cumulative declines of more than 9% on Tuesday and Wednesday were the biggest two-day losses at the start of a year since 1991, according to Refinitiv Eikon data.
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