Oil prices rebound after sharp decline

Oil prices gained Tuesday as traders started to buy in following a sharp decline in the previous session.

Meanwhile, the production disruptions in Libya also helped boost the crude prices. According to the state-run National Oil Corp., Islamist militias on Friday attacked the country's largest petroleum port Es Sider, setting several tanks on fire.

Following the assault, oil production in Libya reportedly fell at least 65 percent from a recent high of 850,000 barrels a day in October.

However, worries over a supply glut still exerts downward pressure on oil prices.

The Energy Information Administration reported last Wednesday that U.S. crude stockpiles added 7.3 million barrels to 387.2 million barrels of the prior week ended Dec. 19, the highest level since June.

Meanwhile, OPEC, which pumps a third of world oil, decided to maintain its collective output quota at 30 million barrels a day at the Nov. 27 meeting in Vienna.

Light, sweet crude for February delivery gained 0.51 U.S. dollars to settle at 54.12 U.S. dollars a barrel on the New York Mercantile Exchange,while Brent crude for February delivery increased 0.02 dollars to close at 57.9 dollars a barrel.