SINGAPORE: Crude prices rebounded in Asia Tuesday as traders moved in following a plunge in New York, analysts said.
New York's main contract, West Texas Intermediate (WTI) for delivery in October, gained 16 cents to $96.78 a barrel in the afternoon and Brent North Sea crude for November added 32 cents to $114.11.
"We're potentially just seeing a little bit of a bounce based on the fact that the move yesterday was so vicious," said Jason Hughes, head of premium client management for IG Markets Singapore.
"A few speculators probably woke up this morning thinking it looks a lot cheaper than it did yesterday," he told AFP.
WTI sank more than $4 in intraday New York trade Monday before closing $2 below Friday's closing price, while Brent dived more than $11 during the session before settling $3 lower.
Traders had been spooked by market speculation that US President Barack Obama's administration would release strategic supplies of gasoline to lower prices ahead of the November 6 election.
The market chatter on strategic petroleum reserves came as Obama faces a tight re-election race against Republican rival Mitt Romney, with the flagging economy one of the main concerns for voters.
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