Brent crude oil hit a fresh five-year low yesterday before rebounding to near $67 a barrel, as some buyers emerged in the hope that prices are bottoming following a more than 40 per cent slide since June.

Fast-growing US shale output has hurt the ability of the Organisation of the Petroleum Exporting Countries, OPEC, to manage supplies, sending prices sharply lower in anticipation of a large oil glut early next year.

Prices were on course to post the first gain in more than a week, but most traders deemed it too soon to call a floor.

“Although talks of oil reaching its bottom are more rampant, we fail to see a reversal coming without stronger fundamentals,” Daniel Ang of Phillip Futures said in a note.

Brent crude for January delivery was up 46 cents at $66.65 a barrel after falling as low as $65.29, its weakest since September 2009. Brent dropped 4.2 per cent or $2.88 on Monday in its third-largest one-day loss this year.

U.S. crude was up 64 cents at $63.69 a barrel, bouncing back after hitting $62.25, its lowest since July 2009. It fell 4.2 per cent or $2.79 on Monday.