Oil prices rebound after sharp decline

Oil prices rebounded Wednesday as traders bought the dip after prior day's heavy sell-off.

Signs emerged that low crude prices slowed U.S. oil companies drilling activities, offering support for oil prices which plunged in the previous session after the International Monetary Fund (IMF) cut its global growth outlook to 3.5 percent and 3.7 percent for 2015 and 2016 respectively.

The global growth rates in 2015-2016 represented both downward revisions of 0.3 percent relative to the October 2014 World Economic Outlook, the IMF's flagship report said Tuesday. It dealt a blow to oil prices which fell still further.

In response to the plunging oil prices, BHP Billiton Ltd, the world's largest mining group, said in a statement on Wednesday that it would reduce the number of operating rigs in the United States to 16 from 26 by July.

Oil prices are likely to stabilize around 45 U.S. dollars to 50 dollars before rebounding, OPEC's Secretary-General Abdalla El- Badri said in an interview at the World Economic Forum in Davos, Switzerland.

Light, sweet crude for March delivery gained 1.31 dollars to settle at 47.78 dollars a barrel on the New York Mercantile Exchange, while Brent crude for March delivery moved up 1.04 dollars to close at 49.03 dollars a barrel.