(MENAFN- ProactiveInvestors)
In energy trading oil rebounded from the biggest drop in a week amid signs that prices near a 5 1/2-year low are slowing drilling in the U.S.
West Texas Intermediate for March delivery gained 2.8% to close at US$47.78 a barrel on the New York Mercantile Exchange.
Brent for March settlement climbed 2.2% to end at US$49.03 a barrel on the London-based ICE Futures Europe exchange.
the largest overseas investor in U.S. shale said it will cut the number of active drill rigs in the country by almost 40%.
The rapid decline in oil prices may deter investment in all types of energy needed to meet future demand the head of the International Energy Agency said.
Oil has dropped more than 10% this year following a decline of almost 50% last year the most since the 2008 financial crisis.
However OPEC Secretary-General Abdalla El-Badri said in an interview that oil prices will rebound rather than extend losses as the collapse since June is not merited by global supply and demand.
The U.S. pumped crude at the fastest rate in more than three decades and the Organization of Petroleum Exporting Countries resisted calls to reduce supply.
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