Oil Recovers in Asia After New York Sell-Off

Oil recovered in Asian trade Thursday after sharp losses in New York triggered by a larger-than-expected jump in US crude stocks, analysts said.

New York's main contract, West Texas Intermediate crude for delivery in May, gained 78 cents to $102.25 per barrel in the afternoon while Brent North Sea crude for May rose $1.04 to $123.38.

Sentiment took a hit late Wednesday after the US Department of Energy said in its weekly report that national crude reserves soared by nine million barrels in the week ending March 30.

That was a far bigger increase than the average estimate of 1.9 million barrels, according to analysts polled by Dow Jones Newswires.

However, Jonathan Barratt of Barratt's Bulletin commodity research firm said Thursday's recovery in crude prices reflected an improvement in confidence towards the US economy.

"The important thing to note is regardless what the numbers say is that the Federal Reserve has withdrawn any chance" of a third round of stimulus measures, he told Agence France Presse from Sydney.

"What this tells us is the Fed is comfortable with the US economy. The market is coming to a little bit more common sense."

Minutes from the US Fed's March 13 policy meeting published Tuesday indicated it was unlikely to ease monetary policy in the near term to boost growth in the world's largest economy.