(MENAFN- AFP) Oil prices rallied Thursday in volatile trading after heavy losses caused by ample US supplies and a stronger dollar, analysts said.
US benchmark West Texas Intermediate (WTI) for delivery in March surged $2.73 to $51.18 a barrel, having shed more than a dollar in early deals.
Brent North Sea crude for March soared $2.92 to stand at $57.08 a barrel in late London deals.
"Volatility is rampant in oil markets right now; prices are gyrating up and down by 5.0 percent every other day as traders jostle for position," said Jasper Lawler, market analyst at trading group CMC Markets UK.
Crude prices on Wednesday snapped a three-day rally, with WTI sinking 8.7 percent owing to climbing US crude stockpiles.
Analysts said prices are weighed down also by the euro's fall on news that the European Central Bank had cut off Greek banks' access to a key source of much-needed cash.
In a decision that rattled global financial markets, the ECB said Wednesday it would no longer allow Greek banks to use government debt, which has a junk rating, as collateral for loans.
"The Greek situation is worth keeping an eye on as it massively impacts the value of the euro against the US dollar," said Shailaja Nair, associate editorial director at energy information provider Platts.
A sinking euro makes dollar-priced oil more expensive, denting demand and adding downward pressure on crude prices, which have already been battered by a supply glut and weak demand.
Crude lost as much as 60 percent of its value since June, when prices were at more than $100 a barrel.
Global supplies have been boosted by surging US shale oil production and a decision by the Organization of the Petroleum Exporting Countries in November to keep current output levels.
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