Oil rebounded in New York after slumping to a fresh five-year low as prices continued to swing amid the highest trading volatility since 2011.

West Texas Intermediate climbed as much as 2.6 percent, trimming a fourth weekly drop. A measure of expected futures movements and a key gauge of options value was at the highest level since October 2011, data compiled by Bloomberg show. Saudi Arabia and OPEC would find it œdifficult, if not impossible to give up market share by cutting supply, according to Ali Al-Naimi, the oil minister of the Middle East producer.

Oil has lost more than 20 percent since Saudi Arabia led the decision by the Organization of Petroleum Exporting Countries to maintain its collective target at a meeting in Vienna last month. U.S. producers continue to pump crude at record levels, contributing to a global supply glut and boosting speculation they will compete with the 12-member group for market share.

WTI for January delivery rose as much as $1.39 to $55.50 a barrel on the New York Mercantile Exchange and was at $54.88 at 11:17 a.m. Sydney time. The contract, which expires today, slid $2.36 to $54.11 yesterday, the lowest close since May 2009. The more active February future was up 91 cents at $55.27. The volume of all futures traded was about 22 percent below the 100-day average. Prices have decreased 44 percent this year.

Brent for February settlement dropped $1.91, or 3.1 percent, to $59.27 a barrel on the London-based ICE Futures Europe exchange yesterday, also the lowest close since May 2009. The European benchmark crude ended the session at a premium of $4.91 to WTI for the same month.

Source : Bloomberg