Oil prices rebound from steep dive

SINGAPORE: Oil prices rebounded in Asia Wednesday following steep losses in the previous session, but analysts said gains were capped by a strong US dollar and persistent concerns about a global supply glut.


US benchmark West Texas Intermediate (WTI) for July climbed 47 cents to US$58.46 while Brent crude for July delivery gained 46 cents to US$64.48 in late-morning trade.

Both contracts fell sharply Tuesday on worries about the crude oversupply and as the greenback soared against other major currencies, making dollar-priced oil more expensive and denting demand.

The US dollar strengthened against the euro after a European Central Bank official said the bank would ramp up its asset-purchase stimulus programme in May and June to offset an expected financial market slowdown in the coming months.