World oil prices rebounded today after steep declines overnight on the back of the strong dollar, a mixed US energy stockpiles report and stubborn concerns about China.
New York's main futures contract, light sweet crude for delivery in March, won 50 cents to $74.17 a barrel. London's Brent North Sea crude for March delivery added 55 cents to $72.79 a barrel.
Crude futures tumbled yesterday amid mixed official US petroleum stockpile data that stirred concerns about weak demand in the world's largest economy.
Oil also sank last night as traders took their direction from the stronger greenback, which makes dollar-priced crude more expensive for buyers using weaker currencies, and therefore tends to weigh on demand and prices. The dollar rose against rival currencies after the US Federal Reserve maintained its key interest rate.
New York crude sank $1.04 to finish at $73.67 in New York trade last night - which was the lowest closing level since December 22.
Investors have been rattled ever since it emerged several weeks ago that China wanted to rein in its booming economy, which up to now has largely led the recovery from the worst global slump since the 1930s.
Meanwhile, the US Department of Energy revealed yesterday that crude oil inventories plunged 3.9 million barrels in the week ended January 22, surprising most analysts who had expected an increase. However, the crude stockpiles were still 5.1% below their year-earlier level. Distillates - including diesel and heating fuel - rose 400,000 barrels last week, instead of the much larger increase expected by the market.
Petrol reserves increased more than anticipated, by two million barrels, and were 6% higher than a year ago.
