SEOUL (Reuters) - Oil prices rebounded to $58 on Thursday after fuel stocks in the United States were cut by freezing weather and as buyers reemerged following a 2 percent sell-off the previous day.
U.S. crude oil futures gained 27 cents to $57.98 a barrel by 0659 GMT -- after hitting an intraday high of $58.11 -- recovering from a $1.17-fall on Wednesday. London Brent crude was up 39 cents to $57.62.
Analysts say the drop in inventory levels was not significant enough to push up oil prices beyond $60, leading to profit-taking after a nearly 20 percent climb since mid-January. The market was still supported by cold weather in the major heating oil consuming regions of the U.S. Midwest and Northeast, which cut distillate fuel stocks by 3.7 million barrels last week, the biggest distillate decline since October.
"The drop was larger-than-expected but it wasn't enough to move up prices as there is a psychological resistance against the $60-level," said J.J. Kim, analyst at Korea Investment and Securities.
Prices have recovered from a dip below $50 in mid-January as unusually warm winter weather turned into a cold spell hitting the key heating oil markets in the world's top oil consumer.
U.S. crude supplies fell by 400,000 barrels, against a forecast rise of 1.4 million barrels, while gasoline rose by an unexpected 2.6 million barrels, the data showed.