Oil price bounces back after Friday’s sell-off
The recent weakness ‘seems to have been driven by a wider impending sense of doom’ than actual catalysts
London — Oil prices rose on Monday, scraping back some of the losses after the previous session’s near-7% fall, although a darkening demand outlook and uncertainty over global economic growth limited gains. Brent crude futures were last up $1.16 on the day at $59.96 a barrel by 10.44am GMT, while US futures were up 69c at $51.11 a barrel. The gains partly made up for Friday’s sell-off. “It is difficult to say whether $60 is the new normal, as there doesn’t seem to be a ‘normal’ at the moment,” Cantor Fitzgerald oil and gas analyst Jack Allardyce said. “The recent weakness seems dramatic given the lack of actual catalysts — it seems to have been driven by a wider impending sense of doom amidst weak equities, geopolitics, subsequent softening demand and increasing supply,” he said. The International Energy Agency predicts global oil demand will top 100-million barrels a year in 2019, growing at a rate of 1.4-million barrels a day, but this is down from its initial assessment in June o...
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