Oil prices rebound in Asia after heavy selloff

SINGAPORE (AFP) – Oil prices rebounded in Asia on Wednesday following a sharp decline in the previous session, analysts said, as investors await a weekly US stockpiles report later in the day.

US benchmark West Texas Intermediate (WTI) for March delivery rose 44 cents to $50.46 a barrel while Brent crude for March rose 16 cents to $56.59 in afternoon trade.

In New York, oil prices slumped Tuesday after the International Energy Agency issued a downbeat global market outlook and traders braced for a further increase in record US crude- oil stockpiles.

US benchmark West Texas Intermediate for March delivery tumbled $2.84 to close at $50.02 a barrel. The global benchmark, Brent North Sea crude for March, settled at $56.43 a barrel in London trade, down $ 1.91 from Monday's closing level.

Nicholas Teo, market analyst at CMC Markets in Singapore, said the downbeat market outlook from the International Energy Agency had pushed both contracts down between three and five percent in the previous session.

The IEA report points to a ''persistent global supply glut'' for crude, Teo said. The agency said in its five-year forecast that prices will recover slightly from current levels by 2020 but remain considerably below the $100-plus per barrel seen in June.