Oil prices rebounded on Wednesday after a sharp decline in the previous session halted a three-day winning streak. Investors are uncertain amid fears of a potential drop in production from Libya and the Middle East, as well as concerns about global fuel demand.

Brent crude futures rose 25 cents, or 0.31%, to $79.80 a barrel by 0209 GMT. West Texas Intermediate (WTI) crude futures gained 17 cents, or 0.23%, to $75.70 a barrel.

This follows a drop of more than 2% on Tuesday, ending a three-day rally that saw gains of over 7%. The decline was driven by concerns over weakening refining margins, which weighed on fuel demand forecasts amid data indicating slower-than-expected global consumption growth this year.

The market also found support from data released late Tuesday showing a decrease in U.S. crude and fuel inventories last week. However, one of the biggest risks remains the potential loss of supply from Libya, where around 1.2 million barrels per day of production could be halted due to political disputes. The escalation of the conflict in Gaza, involving militants in Lebanon and forces from Iran, a key producer in the Middle East, further adds to supply concerns.