08.08.201906:34:00UTC+00Oil Prices Rebound On Speculation Over Output Cuts

Oil prices rebounded on Thursday as China's yuan stabilized after a week of turmoil and speculation intensified that oil producers may cut supply to support the market.

Benchmark Brent crude rallied 1.7 percent to $57.19 a barrel, while U.S. West Texas Intermediate (WTI) crude futures jumped as much as 2.4 percent to $52.30 a barrel.

Both Brent crude as well as U.S. crude futures fell over 4 percent on Wednesday to hit their lowest levels since January on fears of economic recession following a wave of interest rate cuts from around the world.

China's central bank fixed the yuan weaker above 7.00 per dollar - the first time in a decade - but it was not as weak as many had expected, helping alleviate currency war fears.

There was some cheer on the data front as China's exports rose 3.3 percent in the month, compared to forecasts for a 2 percent drop. On the other hand, imports fell 5.6 percent, less than the expected 8.3 percent decline.

Media reports suggest that Saudi Arabia, the world's biggest oil exporter, had called other producers to discuss possible policy responses as oil prices hover near a seven-month low.