NYMEX crude oil rebounds in Asia on bargain hunting after overnight drop

Investing.com - Crude oil prices rebounded in early Asia on Wednesday as investors and rewfiners saw value after sharp drops overnight.

On the New York Mercantile Exchange, West Texas Intermediate Crude Oil for delivery in November traded at $82.40 a barrel, up 0.27%, after hitting an overnight session low of $83.79 a barrel and a high of $85.60 a barrel. The commodity ended at the lowest settlement since June 28, 2012. Prices posted the largest one-day percentage drop in nearly two years.

Brent oil, the global benchmark, fell 4.3% to $85.04 on ICE Futures Europe Tuesday, the lowest price since Nov. 23, 2010. It was the largest one-day percentage drop since September 2011.

Overnight, a double shot of weak European data and an International Energy Agency decision to trim its demand outlook sent crude futures plunging on Tuesday.

The International Energy Agency trimmed its global oil demand forecast for the fourth month in a row earlier Tuesday, stoking fears that global supplies remain ample while demand cools across the globe.

The agency said it now expected global oil demand for 2014 to total 92.4 million barrels a day, down 200,000 barrels per day from its September report.

The IEA added that it believes that demand growth "may have touched bottom" and should steadily improve.

Soft European data bruised prices as well by stoking fears demand for the growth-sensitive commodity may cool even more.

The ZEW Centre for Economic Research reported earlier that its German economic sentiment index fell to -3.6 this month from September’s 6.9 reading. Analysts had expected the index to come in at 1.0 in October.

The index of euro zone economic sentiment plunged to 4.1 in September from 14.2 in August, well below expectations for a decline to 7.1.

A separate report showed that eurozone industrial production contracted 1.8% in August from July, outpacing expectations for a 1.6% decline. July's figure was revised to a 0.9% rise from a previously estimated 1.0% increase.

Year-on-year, industrial production fell 1.9% in August, surpassing expectations for a 0.9% decline and after rising at a rate of 1.6% the previous month.