Crude oil futures rallied Thursday as traders bet the recent collapse in energy prices was overdone.

March oil settled at $29.53/bbl on Nymex, up $1.18, or 4.2%.

The February contract ended yesterday at 12-year lows near $28 a barrel.

With some calm restored to markets today, crude oil rose despite data showing another large build in US oil inventories.

U.S. commercial crude inventories increased by 4 million barrels last week, for a total U.S. stockpiles of 486.5 million barrels — the biggest glut in 80 years.

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