Brent oil rebounds on hints of stabilization in markets

Global benchmark Brent crude futures rose 23 cents (0.4%) at $56.49 per barrel by 0443 GMT. It dropped 5.6% on Tuesday, at one point hitting a 14-month low.

WTI climbed 4 cents (0.09%) to $46.28 per barrel, after plunging 7.3% the day before in a session when it touched its lowest since August 2017, Reuters reported.

Further adding to the oversupply concerns, the American Petroleum Institute said U.S. crude stocks rose unexpectedly last week, while gasoline inventories increased. If the build in crude stockpiles is confirmed by U.S. government data Wednesday, it will be the first increase in three weeks.

Meanwhile, analysts said that upcoming output cuts led by the OPEC had so far failed to stimulate the market as they were not due to kick in until next month.

The U.S. government said shale production is expected to climb to over 8 million barrels per day (bpd) for the first time by the end of December.

However, there were some factors tightening supply, with Libya's state oil company declaring force majeure at the country's largest oilfield.