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Crude halted a four-session decline on Wednesday
after U.S. crude stockpiles fell and as data showed that the
U.S. economy remained resilient amid slowing global growth.
Brent crude rose 20 cents to $51.35 by 0621 ET. It dropped as
low as $49.66 on Wednesday, the lowest since April 29, 2009.
U.S. crude was at $48.84, up 19 cents.
"This is just a technical rebound after the massive drop in
previous days," said Carsten Fritsch, analyst at Commerzbank,
adding the rout may not have bottomed out. "I don't think we are
there yet, given the fundamental backdrop."
Brent has plunged more than half since June. Downward pressure
remains strong as OPEC and Russia show no sign of cutting output
despite a supply glut and as major economies in Europe and Asia
struggle with slowing growth.
"We believe that the market is testing water to find where the
bottom of crude oil is and it seems for now, $50 is the limit
for Brent," Phillips Futures analyst Daniel Ang wrote in a daily
note.
Data showing that Germany's industrial orders fell more than
expected in November pressured oil prices and served as a
reminder that a recovery in Europe's largest economy remains
fragile.
The price slump has sparked a buying spree by China that led to
record crude imports in December, according to Reuters estimates
that suggest the top energy consumer doubled the oil put aside
for strategic reserves in 2014 compared with 2013.
U.S. crude inventories last week fell 3.1 million barrels
compared with analyst expectations for an increase of 880,000
barrels, a report from the Energy Information Administration
showed on Wednesday.
Economists have sharply raised estimates for U.S. fourth-quarter
growth after the country's trade deficit shrank in November on
lower oil import costs.
Brent's largest rout occurred in 2008, when prices collapsed
from a record high above $147 a barrel and declined by 51
percent over the year.
(Additional reporting by Florence Tan in Singapore; Editing by
Dale Hudson)
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