Oil rebounded from five-month lows as traders weighed supply signals
Oil prices recovered on Tuesday, snapping a three-day decline, as traders reassessed expectations of a potential supply glut and monitored developments in global trade relations.
Oil prices recovered on Tuesday, snapping a three-day decline, as traders reassessed expectations of a potential supply glut and monitored developments in global trade relations.
Brent crude settled up 31 cents, or 0.5%, at $61.32 a barrel.
WTI for November delivery, which expired at settlement, rose 30 cents, or 0.5%, to $57.82. Both benchmarks had earlier touched their weakest levels since early May.
The market stabilised after recent declines driven by record US production and plans by OPEC and its partners to proceed with scheduled output increases, which have reinforced expectations of a widening surplus.
Relatively low domestic crude and distillate stocks helped offset some downward pressure, while the futures curve for both benchmarks shifted toward contango, signalling comfortable near-term supply and weakening demand.
The International Energy Agency projected a surplus for next year, while analysts noted that the market remains oversupplied but not yet in a glut. A Reuters poll indicated US crude inventories likely rose last week, suggesting fresh builds could deepen the contango structure.
Written: Aiman Haikal