Oil prices bounce back as supply concerns return

Oil prices rose as much as nearly 3 per cent on Wednesday before paring some gains as investors piled back into the market after a heavy rout in the previous session, with supply concerns returning to the fore even as worries about a global recession linger.

Brent crude futures rose as much as $3.08, or 2.9 per cent, to $105.85 a barrel in early trade after plunging 9.5 per cent on Tuesday, the biggest daily drop since March. It was last up 92 cents, or 0.9 per cent, at $103.69 a barrel at 0243 GMT.

US West Texas Intermediate crude climbed to a session high of $102.14 a barrel, up $2.64, or 2.7 per cent, after closing below $100 for the first time since late April. It was last up 46 cents, or 0.5 per cent, at $99.96 a barrel.