Oil Advances After Three-Day Rout As Global Equity Selloff Eases
Oil gained after a three-day slump as equity futures pointed to rebounds in Japanese and US benchmarks, and the halting of production from Libya’s biggest field refocused attention on the Middle East.
(Bloomberg) -- Oil gained after a three-day slump as equity futures pointed to rebounds in Japanese and US benchmarks, and the halting of production from Libya’s biggest field refocused attention on the Middle East.
West Texas Intermediate climbed above $74 a barrel after losing more than 6% over the previous three sessions, while Brent closed lower near $76. Benchmark equity indexes in Japan and the US are set to rise after a fierce correction on Monday. Output from Libya’s Sharara field stopped completely, as dueling administrations battle for control over the North African nation.
Traders are still bracing for a retaliatory attack by Iran and regional militias on Israel for assassinations of Hezbollah and Hamas officials, although Tehran has reiterated it wants to avoid all-out war.
Brent came within cents of $75 a barrel on Monday before rebounding on news of the Libyan supply loss and concerns that the conflict in the Middle East could impact production from the region. Prices have returned to near where they started the year after gains bolstered by OPEC+ supply cuts.
“The $75 floor under Brent oil prices will withstand macro fears,” Goldman Sachs Group Inc analysts including Daan Struyven said in a note. The limited risk of a US recession, resilient oil demand in developed nations and India and an increase in speculative positioning should support prices, they said.
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