(MENAFN- AFP) Global oil prices rebounded Thursday as more leading petroleum producers announced they would curtail investment due to tumbling crude prices.
US benchmark West Texas Intermediate for March delivery gained $2.37 to close at $51.21 a barrel on the New York Mercantile Exchange.
European benchmark Brent North Sea crude for March delivery advanced $2.39 to $57.05 a barrel in London.
The gains snapped two straight sessions of large declines, with Wednesday's drop sparked by data showing a large increase in US crude inventories.
"One day, it's up, another, it's down and it doesn't seem there's really any rhyme or reason for any of this," said Bart Melek, head of commodity strategy for TD Securities.
French oil giant Total became the latest oil company to reduce drilling plans, following similar announcements by Royal Dutch Shell and others that have seen earnings hammered by low crude prices.
Total will cut its investment by more than 10 percent and reduce its workforce by some 2,000, mainly through a hiring freeze.
That news was followed by a similar announcement from the smaller Apache Corp, which cut its rig fleet from 91 to 27 as part of an initiative to trim investment.
"While we are fortunate to have a substantial inventory of projects that can make economics at these oil prices, we believe it more prudent to curtail our activity until costs are lower and prices recover," said Apache chief executive John Christmann.
Analysts said the cutbacks were a positive omen for the market in the long term, but would have a minor impact in addressing a supply glut in the short run.
Analysts also cited the falling dollar as a factor in Thursday's jump in oil prices.
A weaker greenback makes dollar-denominated crude cheaper for buyers using stronger currencies. In turn, that tends to stimulate demand and price levels.
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