The price of oil rebounded from recent 12-year lows to settle below $30 (Rs 2,035 approximately) per barrel on Thursday. The Brent North Sea crude for delivery in March rose $1.92 to $29.80 a barrel, compared to Wednesday. The United States benchmark West Texas Intermediate for March rallied $1.55 to $29.90, reported AFP.

Traders expected a quick recovery from this year's 20% slump, with oil under pressure from a deepening supply glut and signs of economic weakness in China, reported Reuters. Iran's return to the oil market after the lifting of international sanctions has added to concerns. The International Energy Agency warned that the market could "drown in oversupply" with the return of Iranian crude.

The oil slump has led to plunging global stock markets, while the International Monetary Fund downgraded world economic growth.