Oil prices rose by about three percent on Monday, downgrading some of the steep losses in the previous session, although uncertainty about global economic growth and additional signs of rising supply lowered profits.
FILE PHOTO: Oil pump seen at sunset outside Schaenbhard, near Strasbourg, France, October 6, 2017 REUTERS / Christian Hartman / File Photo
Brent LCOc1's crude futures rose 1.86 dollars to 60.66 dollars a barrel, which is 3.2% profit, to 11:26 EST (1626 GMT). The WTI CLT1 American WTI (WTI) futures started $ 1.44 to $ 51.86 a barrel, which is a 2.9% profit.
Prices on Friday reached their lowest levels since October 2017, when fears of merger increased. Brent dropped to $ 58.41 a barrel, while WTI fell to $ 50.15 a barrel.
"We are alive," says Phil Flynn, a Price Futures Group analyst at Chicago. "Many people have realized that the black and blue Friday is probably too deep and colder.
By supporting oil prices, US stock markets rose as Cyber Monday, the biggest online shopping day for the year. Raw futures are sometimes tracked with the stock market.
Prices have found some support as a crude stock in the center of the US in Cushing, Oklahoma, rose only from 126 barrels from Tuesday to Friday, traders said, citing a report by the Genscape marketing company.
However, concern over Saudi Arabia's demand for and recording of production limited the rebound on Monday.
Saudi crude oil production reached 11.1-11.3 million barrels per day (bpd) in November, the highest value ever.
The rising dollar, which undermined demand in key emerging market economies, higher borrowing costs and the threat of global growth from the US-China trade dispute pushed investors out of assets that are more closely linked to the global economy, such as stocks or oil .
Only in November the hedge funds have withdrawn more than $ 12 billion from the oil market, on the basis of a record decline in Brent's net long-term stakes and a crude US futures and options over the average oil price of the month.
Even the prospect of an almost safe reduction in production by the Organization of Petroleum Exporting Countries is not enough to stop the slide.
OPEC met in Vienna on December 6, against expectations that Saudi Arabia will push production cuts to 1.4 million barrels of its producer and ally club.
Goldman Sachs (GS.N) said on Monday that the G20 summit this week could be a catalyst for weakening commodity prices, which is likely to defuse tensions in trade between the US and China, and will offer greater clarity about the potential oil fight in OPEC .
Goldman believes that OPEC and other countries will reach an agreement that will result in Brent's rebate.
"While we did not think Brent's prices were justified at $ 86 a barrel, we do not believe they are worth $ 59 a barrel with our 2019 Brent forecast at $ 70 a barrel," Goldman said.
Graphics: Bearing Construction 2019 Crude Oil Options Brent – tmsnrt.rs/2RgxUQw
Graph: Comparative Balance of Demand and Demand for Crude Oil – tmsnrt.rs/2PKtzIy
Additional reports from Amanda Cooper in London and Henning Gloystein in Singapore; Editing by Louise Heavens and Chizu Nomiyama