Oil Rebounds From Seven-Month Low as Saudis Seek to Stem Slide

(Bloomberg) — Oil rebounded from the lowest in almost seven months as Saudi Arabia contacted other producers to discuss options to stem the price rout.

Futures rose as much as 2.9% in New York, clawing back some of Wednesday’s 4.7% decline. Saudi Arabia won’t tolerate continued price weakness and is considering all options, according to an official from the kingdom who asked not to be identified. That came after a surprise increase in U.S. stockpiles, the first gain in eight weeks, helped push down prices on Wednesday.

Crude is down more than 10% this month as the worsening U.S.-China trade war damped the demand outlook, eclipsing fears that geopolitical tension in the Middle East will disrupt energy flows. Growth in global oil demand is slowing and won’t exceed 650,000 barrels a day this year, according to Vitol Group, the world’s largest independent oil trader.

“Oil prices have clawed back some losses, but the sentiment remains overly bearish,” Stephen Innes, managing partner at VM Markets, said in a note. “The big question remains will the verbal intervention be enough to stem the tide, or will oil traders use this opportunity to increase short positions.”

West Texas Intermediate oil for September delivery added $1.19, or 2.3%, to $52.28 a barrel on the New York Mercantile Exchange as of 9:02 a.m. in Singapore after advancing as much as $1.46 earlier. The contract slumped $2.54 on Wednesday to the lowest close since Jan. 14, capping an 8.2% slide over three days.

for October settlement climbed $1.16 or 2.1%, to $57.39 a barrel on the ICE (NYSE:) Futures Europe Exchange. It plunged 4.6% on Wednesday. The benchmark global crude traded at a premium of $5.13 to WTI for the same month.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.


Leave a Reply