Brent rebounds above $114 but eyes largest weekly loss since December

Brent fell nearly 2 percent on Thursday, its steepest drop since November, during a two-day rout fuelled by worries that the US Federal Reserve could wind down its bond buying programme earlier than expected and that Saudi Arabia could raise its oil output.

Weak economic data out of the United States and the euro zone added to concerns that the global economy is still struggling.

Brent crude for April rose 57 cents to $114.10 a barrel by 0358 GMT while US crude was at $93.32, up 48 cents, after hitting a six-week low in the previous session.

"It's unlikely that the Fed would begin to wind down its QE programme until the US economic growth is improving at a faster rate than currently," said Ric Spooner, chief market analyst at CMC Global Markets in Sydney.

The debate on whether the Fed should tighten its monetary policy continued on Thursday although economic data is still pointing to a tepid recovery, supporting the case for the Fed to maintain its bond-buying programme.

The Fed's asset purchases have resulted in a flood of liquidity that has fed a bid for riskier assets such as oil amid a climate of ultra-low interest rates.

Investors will also watch the US budget debate as President Barack Obama called Republican leaders on Thursday to resume negotiations.