LONDON: Oil prices rebounded slightly on Friday, a day after tumbling on concerns over the US central bank ending its multi-billion dollar economic stimulus measures, as well as owing to poor Chinese manufacturing data.
Brent North Sea crude for delivery in August gained 48 cents to stand at $102.63 a barrel in London midday deals, after slumping almost $4.0 Thursday its biggest loss since the start of November.
New York's main contract, West Texas Intermediate (WTI) light sweet crude for August, climbed 34 cents to $95.48 a barrel on Friday, after shedding $2.84 Thursday.
"It seems that the oil market has overreacted... and crude oil prices have rebounded on Friday, in a small correction higher," said Myrto Sokou, senior research analyst at Sucden brokers.
The oil market had on Thursday joined a global sell-off in markets that also saw stocks and gold prices plummet in response to Fed chairman Ben Bernanke's comments that the US central bank could begin to wind down its $85 billion-a-month bond purchases if the economy continues to improve.
Markets were hit additionally by poor manufacturing data from China a key global economic driver and the world's top energy consumer.
HSBC's preliminary purchasing managers' index (PMI) released Thursday hit 48.3, worse than May's final reading of 49.2 and its lowest since September.
A reading below 50 indicates contraction, while anything above signals expansion.
The data follows another batch of weak indicators in May that fuel concerns over the financial strength of China, the world's second-biggest economy.
"There is no substantive factor to support oil prices at this moment," said Victor Shum, managing director at research body IHS Purvin and Gertz in Singapore.
"Oil futures will continue to move downwards in sync with equity markets after the US Fed announcement and poor Chinese manufacturing data," he told AFP on Friday.
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