World oil prices rebounded on Wednesday following the previous day's heavy losses in a rally spurred in part by hopes for a resolution to the Ukraine conflict.
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US benchmark West Texas Intermediate for October delivery gained $US2.66 to close at $US95.54 on the New York Mercantile Exchange, largely recovering from a drop of more than $US3 the previous day.
European benchmark Brent oil for delivery in October jumped $US2.43 to $US102.77 a barrel in London, coming back from a fall on Tuesday to its lowest level since May last year.
WTRG Economics analyst James Williams called the rebound normal after such a steep one-day fall, although the extent of Wednesday's bounce was "a little bit surprising".
"People are anticipating better jobs numbers at the end of the week" when the Department of Labour releases its US jobs report for August, Mr Williams said.
Analysts said Wednesday's developments in Ukraine were also a factor in the rally, with an end to the fighting seen as potentially lifting oil consumption.
Meanwhile, gold prices edged higher on the European spot market after a sharp drop in the previous session, but the market was unmoved by news of a ceasefire in eastern Ukraine.
The losses on Tuesday were largely down to the strength of the US dollar, which rose after strong US manufacturing data.
That is likely to increase pressure on the Federal Reserve to withdraw some of its extraordinary monetary stimulus, which makes the US dollar a more attractive investment.
"The US dollar hit its highest level (against a basket of currencies) since January after the ISM (manufacturing data) print," ANZ Research said.
Copper futures fell on Wednesday amid a flurry of downbeat economic reports from Europe and lingering worries about demand from China.
The most actively traded contract, for December delivery, was recently down 1.65c, or 0.5 per cent, at $3.1385 a pound on the Comex division of the New York Mercantile Exchange.
Data firm Markit's monthly composite purchasing managers index – a measure of activity in the eurozone's manufacturing and services sectors – fell to 52.5 in August from 53.8 in July, the lowest level this year to date, and lower than the preliminary estimate of 52.8.
