Oil prices rebound in Asian trade, above $48

SINGAPORE: Oil rebounded in Asian trade this morning after overnight declines in reaction to a surprise rise in US gasoline reserves, analysts said,

New York's main contract, light sweet crude for May delivery rose 47 cents to USD 48.86 a barrel.

Brent North Sea crude for May delivery was 45 cents higher at USD 48.89.

The rebound in oil prices is likely to be unsustainable given the overwhelming concerns about energy demand in the recession-hit US economy, the world's biggest oil consumer, analysts said.

"Any way you look at it, it was a very bearish report," James Williams of WTRG Economics said of the US government's weekly report on oil reserves.

The Energy Department yesterday said that gasoline, or petrol, stockpiles rose 2.2 million barrels in the week ended March 27, compared with analyst forecasts for a drop of 1.1 million barrels.

US crude oil reserves rose 2.8 million barrels in the same period, compared with forecasts for an increase of 2.6 million barrels.

"Consumption is down and inventories are up," said Williams.

"There is more supply than demand, this is typical of a recession. This is a low demand period," he said.