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Oil prices rebound after sharp losses as supply concerns dominate

20 April 2022 08:58 (UTC +04:00)

Oil prices rebounded on Wednesday from sharp losses in the previous session as concerns about tighter supplies from Russia and Libya dominated, while industry data showed a drop in U.S. crude inventories last week, APA reports citing Reuters.

Brent crude futures rose 98 cents, or 0.9%, to $108.23 a barrel by 0400 GMT while the front-month WTI crude futures contract, which expires on Wednesday, rose 94 cents, or 0.9%, to $103.50 a barrel. The second-month contract gained $1.07 to $103.12 a barrel.

Both benchmarks fell 5.2% in volatile trading on Tuesday after the International Monetary Fund (IMF) on Tuesday slashed its forecast for global growth by nearly a full percentage point, citing the economic impacts of Russia's war in Ukraine, and warning that inflation was now a "clear and present danger" for many countries.

"The sell-off yesterday on the back of the IMF revisions was probably overdone," said Warren Patterson, ING's head of commodities strategy based in Singapore.