Oil prices rose by almost three percent as markets prepare to open on Wednesday. Brent Crude future rose by a total of $3.08 (£2.58) to $105.85 (£8
Oil prices rose by almost three percent as markets prepare to open on Wednesday. Brent Crude future rose by a total of $3.08 (£2.58) to $105.85 (£88.60) per barrel despite plunging by as much as 9.5 percent on Tuesday.
Yesterday’s drop is said to have been the biggest daily drop since March.
However, it was last up 92 cents (77 pence), or 0.9 percent, at $103.69 (£86.79) a barrel at 2.43am.
US West Texas Intermediate also returned to a higher rate of $102.14 (£85.50) a barrel, up $2.64 (£2.21), or 2.7 percent, after closing below $100 (£83.70) for the first time since late April.
Speaking about the bounce back, Again Capital LLC partner John Kilduff said: “Today is sort of a reset.
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“No doubt there is short covering and bargain hunters are coming in.”
He added: “The fundamental story regarding global tightness is still there… The sell-off was definitely overdone.”
CMC Markets’ Shanghai-based analyst Leon Li also said: “Although crude oil still faces the problem of a supply shortage, key factors that led to the sharp selloff in oil yesterday remain.”
He explained: “Thus, today’s rebound could be a short-term correction for bears and oil prices are likely to remain under pressure in the near future.”